Subaru Of Indiana Automotive Temporarily Halts Production Due To Chip Shortage
An ongoing shortage of semiconductor chips is causing automobile makers in Indiana to temporarily halt production. The problem is highlighting continued issues with the global supply chain.
Subaru of Indiana Automotive announced it is temporarily idling its Lafayette facility the last two weeks in April in response to the limited supply of semiconductor chips needed for vehicles.
It’s expected to affect about 15,000 vehicles produced at the facility. The company won’t say how many workers are affected.
Carol Handwerker, Purdue University materials engineering professor, said there are hundreds of chips needed for each car.
“There are chips associated with the ignition, there are chips associated with all of the internal combustion engine; how it gets powered,” said Handwerker. “There are now chips that control the braking. So, they really are everywhere in the car.”
Handwerker said the market for the technology is expected to be uncertain for a while and will take time for automakers to return to the needed supply of chips.
GM, Honda and other car makers have also cut production or idled facilities around the world in recent months due to the shortage.