Chip Shortage Update | Toyota, Subaru & Honda Struggle

It’s no secret that the semiconductor chip shortage is causing major production disruptions for the auto industry. Toyota, Subaru, and Honda are among the latest automakers to be impacted, with all three announcing production cuts at various plants in North America.



The chip shortage has been building for months, as the pandemic caused a decrease in demand for vehicles while at the same time leading to an increase in the demand for chips for other electronics like laptops and gaming consoles. The combination of these factors has led to a perfect storm that has severely constrained the supply of chips.

For Toyota, the production cuts will affect five plants in the United States and Canada. The plants that will be impacted are the Toyota Motor Manufacturing Kentucky plant in Georgetown, the Toyota Motor Manufacturing Canada plant in Cambridge, the Toyota Motor Manufacturing Indiana plant in Princeton, the Subaru of Indiana Automotive plant in Lafayette, and the Honda of Canada Manufacturing plant in Alliston.

These production cuts come on the heels of announcements from General Motors and Ford that they are also reducing production at various plants due to the chip shortage. The hope is that by making these cuts now, the companies will be able to avoid even more severe production disruptions down the road.

The auto industry is just one of many that is being impacted by the chip shortage. The shortage is also causing problems for the consumer electronics industry, with companies like Sony and Microsoft struggling to get enough chips to meet demand for their PlayStation and Xbox consoles.

It’s still unclear how long the chip shortage will last, but it’s clear that it is having a major impact on the economy and will continue to do so for the foreseeable future.

You May Also Like