Hyundai, Subaru, and Suzuki reduce vehicle production because of chip shortage

Hyundai, Subaru, and Suzuki reduce vehicle production because of chip shortage
Image: YouTube | YOUCAR

Hyundai, Subaru, and Suzuki recently announced plans to temporarily reduce their vehicle output because they lack adequate semiconductor supplies.

The three carmakers are following their counterparts in China, Europe, and the United States in cutting their output. Most leading personal transport manufacturers have suffered operational disruptions amid the global component crunch.

In addition, Renesas Electronics, the world’s second-largest auto chip manufacturer, revealed it took action to mitigate the impact a recent fire had on its operations.

More Carmakers Cut Vehicle Production Amid Chip Shortage

Hyundai announced it would cease vehicle assembly at its Ulsan, South Korea plant from April 7-14. The corporation initiated the work stoppage because it has insufficient quantities of certain front video camera systems and power modules. Typically, the affected facility rolls out 310,000 automobiles annually, including Kona and IONIQ 5 SUVs.

Hyundai previously maintained its normal operations despite the chip crunch because it had a part stockpile.

Subaru also revealed it would cut personal transport output at its Yajima, Japan factory by 10,000 units due to the component shortage. It is selectively idling manufacturing lines that make its Forrester and Outback SUVs through May 10. By then, the firm believes it will have enough supplies to resume its usual output.

Under normal conditions, the Subaru facility and its counterpart in Gunma Prefecture assembled 664,000 cars every year.

Finally, Japanese automaker Suzuki halted work at its Sagara factory and partially suspended operations at its Kosai site. The former plant made Swift and Solio miniature multi-purpose vehicles while the latter produced kei-class cars like the Jimmy SUV. But the company plans to run its centers during the holiday season to ensure its overall output is not affected.

Suzuki’s Sagara and Kosai plants made around 752,000 units during the fiscal year ending March 2020.

Hyundai, Subaru, and Suzuki are not the only leading automakers based in East Asia to announce semiconductor-related factory shutdowns. Toyota, Nissan, and Honda, all based in Japan, said they would pause work at some factories last month.

Nio, Stellantis, and General Motors also cut personal transport production in light of the worldwide scarcity of crucial electronic components.

Renesas Shifts Production Away From Fire Damaged Plant

At present, industry insiders predict the global chip bottleneck will persist into 2021. However, Renesas recently took steps to ease the effect the shortfall is having on its clients before then. The company assigned its factory in Ehime, Japan to manufacture 200mm silicon wafers.

Renesas retasked the facility after a fire broke out at its N3 complex in Naka. The blaze destroyed several fabrication tools and over 6,400 square feet of clean room space. However, the firm revealed it could fabricate 90 percent of the products made at the site in its other locations.

Currently, the chipmaker expects to resume normal shipments from Naka in a little over 90 days. But its swift decision to fabricate additional components that the Ehime site will assist in its recovery efforts. Since Renesas is a major supplier for Toyota, Honda, Nissan, and other top carmakers, the impact of its mitigation efforts will be felt worldwide.


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