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

Japan's Subaru plans biggest-ever global recall over brake lights
Japan's Subaru plans biggest-ever global recall over brake lights

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  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.