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Japan's Subaru to suspend production in Indiana on chip shortage

Published 2021-04-20, 12:28 a/m
Updated 2021-04-20, 02:00 a/m
© Reuters. The logo of Subaru Corp. is pictured at the 45th Tokyo Motor Show in Tokyo

(Corrects number of vehicles affected to 15,000 from 150,000 in third paragraph)

TOKYO (Reuters) -Japanese automaker Subaru Corp said on Tuesday that it was suspending production at its plant in Indiana through the end of April due to a global shortage of semiconductors.

Automakers from Ford Motor (NYSE:F) to Nissan Motor have cut production due to the shortage of chips, used extensively in new cars for automatic windows, parking assistance and entertainment systems.

A Subaru spokeswoman said 15,000 vehicles for North America would be affected.

She said that a continued global shortage for chips, rather than a recent fire at Renesas Electronics Corp's chip-making factory, was the main factor behind the suspension.

Increased demand for video games from people staying at home amid a global pandemic has also led to the scarcity, analysts say.

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