The chip shortage is hitting Subaru harder than most.
Subaru recently released a short statement confirming the temporary suspension of production at its manufacturing facilities in Japan.
Three primary plants at Subaru’s Gunma Manufacturing Plant will be suspended. These are the Main and Yajima Plants responsible for car manufacturing and the Oizumi Plant responsible for engines and transmissions.
The suspension is thankfully short. It starts today and continues tomorrow. By Monday next week, the plants will be back up and running. Subaru did not provide a reason for the suspension but rather apologized to its customers and stakeholders.
There’s a 99.9% chance it’s due to the global parts shortage. Subaru sent out a similar press release in late April, acknowledging a two-day suspension at the plants mentioned above. That notice specifically mentioned interruptions in the parts supply chain.
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The supply chain interruption is unsurprisingly semiconductor chips. The global chip shortage has had a catastrophic effect on Subaru’s ability to produce cars. Scooby’s 2021 sales figures were grim, and it’s being forced to stop production on highly sought-after vehicles like the all-new BRZ.
Subaru also has a dealer problem. Because of the short supply of BRZs, Outbacks, and Foresters, dealers added significant markups to people in desperate need of new cars. The problem is that Subaru trades heavily on value for money, so the CEO sent a sternly-worded letter to the dealer network, warning them not to do it anymore.
The Yajima plant is responsible for building the Impreza, Crosstrek, WRX, and BRZ. While the Crosstrek and BRZ are in high demand, Subaru’s volume model is still made in the USA.
Subaru of Indiana is the brand’s only plant outside of Asia and is responsible for half of the vehicles sold in the USA. It builds the best-selling Outback, Ascent, Impreza, and Legacy. While Subaru cannot fulfill the demand for the BRZ, and yoga teachers will have to wait for a new Crosstrek, Scooby can at least continue to supply the US with the Outback.
The chip shortage is unfortunately here to stay. Experts predict it will last throughout the rest of this year and next year, and the situation will most likely only start to stabilize in 2024.
