Subaru Stops All Car Production In Japan

Industry News / 5 Comments

An estimated 10,000 new cars will be lost.

Subaru is preparing to unveil the all-new WRX sports sedan next week, but behind the scenes, the Japanese automaker is struggling to cope with supply problems caused by the ongoing semiconductor chip shortage like many car companies right now. Back in April, Subaru suspended production at its Yajima plant in Japan, which produces the BRZ, Crosstrek, Impreza, WRX, STi, and Forester, for 13 days, resulting in a loss of 10,000 cars.

Subaru's American plant Lafayette, Indiana, was also idled the same month. With the semiconductor crisis showing no signs of ending soon, Subaru is once again being suspending all production in Japan.

2018-2021 Subaru WRX STI Front View Driving Subaru
2018-2021 Subaru WRX STI Rear Angle View Subaru

On September 4th, production at Subaru's Yajima plant will be halted. With a shortage of parts to build components, Subaru is also suspending manufacturing at its Oizumi factory, which builds engines and transmissions. Production at both plants will be suspended for four days from September 4th to September 10th. For now, Subaru's Indiana plant is unaffected. We certainly hope it stays that way.

It isn't known how Subaru's financial results will be affected at this time. But with multiple production shutdowns this year, the company's sales will inevitably take a hit if dealer inventories run low. We've already seen the semiconductor chip shortage affect Subaru's sales in America.

2019-2021 Subaru Forester Front View Driving Subaru
2019-2021 Subaru Forester Rear View Driving Subaru

Back in June, Subaru's US sales were down by 20 percent compared to the same month last year, with 42,877 vehicles sold. Despite this, Subaru's Q2 sales were up by 20.5 percent, so there's still hope that Subaru can weather the storm.

As the semiconductor shortage continues to disrupt the auto industry, Subaru isn't the only Japanese manufacturer being forced to cut production. After stockpiling them for several months, Toyota's supply of semiconductor chips is running out. As a result, Toyota is reducing global production by 40 percent throughout September. Toyota is expecting to suffer losses of 140,000 cars in Japan and a combined 208,000 cars in North America, Europe, and China.

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