More automakers have stopped building some cars due to a global shortage of microchips. Honda, which had warned the move was likely, will shutter British factories for a week in response to tight supplies of semiconductors. Likewise, Subaru plans production cuts at plants in Indiana and Gunma, Japan.
Subaru’s announcement is just for two days of factory closures. But the company acknowledges that further reductions may be necessary during February, as there is no end in sight to the shortage. Ford, Fiat Chrysler, Nissan, Toyota, and Volkswagen have all announced partial shutdowns.
The shortage has a two-part cause. First, processor manufacturers shut their own factories for several weeks last year as the coronavirus crisis began, limiting global supply. Then people worldwide began buying electronics at a faster than normal pace in the transition to working and attending school from home.
A single car can contain dozens of chips, which are critical to everything from engine control to the pedestrian detection and lane departure warning systems that buyers increasingly expect.
The shortage of chips hasn’t meant a shortage of cars, yet. Manufacturers are being careful to shut down production of the slowest-selling cars so that they retain a good selection of their best-selling models. But if this goes on, we could see prices rise as supply falls.
