Subaru’s only plant in Japan, which accounts for 60% of global production, is set to shut down. The Japanese manufacturer found a defect with a power steering component, which could result in a shutdown of up to two weeks. Though, Subaru says production could restart as early as Monday.
This defect only affected Foresters, Imprezas and XV Crosstrek models. However, Subaru produces all of their cars on the same line. Thus, shutting down the plant for just those three models has resulted in a production halt for every car built there. Though, the cause of the defect is still unknown.
How much will it cost Subaru?
According to Automotive News, one analyst estimated a dent in operating profits of $123 million, should the plant be closed for just one week. However, Subaru has made no formal comment about the financial affect this could have on the company. Although, Subaru’s earnings are already on track for their third-straight drop annually. This certainly won’t help.
Is the Indiana plant affected?
Subaru said that they were investigating whether or not the Indiana manufacturing plant has been affected by a similar issue. However, they have not halted production from this plant at this time.
We will keep you posted on further developments resulting from this Subaru Plant closure. So, stay tuned to TFLcar.com for the latest news, views & real-world reviews. While you are waiting to hear more updates on the plant closure, why not check out one of our videos?
We have our own Outback, as it turns out. Watch the video below to see how the Outback performs in the snowiest of conditions: