Subaru CEO Speaks Out On Microchip Shortage And How It Affects New SUV Shoppers

Bloomberg interviewed Subaru CEO Tom Doll this week, and he revealed what's in store for 2021 Subaru Forester, Outback, and Crosstrek shoppers because of the microchip shortage. Doll told Bloomberg's Carol Massar that the microchip shortage would have a minimal impact through March, and then there will be an adjustment in April and May; they don't know how much.

"It's essentially going to be a week-to-week, and every ten days, we get an estimate from our factories in Japan and Lafayette, Indiana giving us updates on the status of the chip shortage," Doll said.

Photo credit: tm_subarusalesspecialist Schumacher Subaru of West Palm Beach

"We are working with our suppliers all over the world to figure out where we can source additional chips. The chips are vital for our new vehicles' operation, and it does stop production when we don't have an adequate supply. It does throw a wrench into the whole production system."

Subaru Corporation released its financial results and says it has adjusted its production due to the global shortage of semiconductor supplies. Subaru is forecasting a decrease of about 43,000 vehicles from its previous forecast, down 16.1 percent in 2021.

Photo credit: tm_subarusalesspecialist Schumacher Subaru of West Palm Beach

A report from Yahoo News says Subaru reduced its output by another 10,000 vehicles due to a global shortage of shipping containers. The reduction brings the total vehicle decrease to 53,000 cars, which is more than one month's sales for Subaru of America.

Most of those sales will be the popular 2021 Forever, Outback, and Crosstrek SUVs. Doll says they have a target of 660,000 vehicles in 2021, and that estimate may have more of an upside. He expects the second half of the year to improve. But that may change if they don't have enough new cars to sell to their customers.

Subaru already has the tightest supply of cars of any automaker at 29 days as of January 1, 2021, according to its Research & Data Center. New models are coming, and Subaru expects to bounce back from a problematic sales year.

With the 2021 Subaru Forester, Outback, and Crosstrek in the hot small SUV segment, Subaru is optimistic going into 2021. Will they have enough models to sell to customers? Stay tuned.

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Denis Flierl has invested over 30 years in the automotive industry in a consulting role working with every major car brand. He is an accredited member of the Rocky Mountain Automotive Press. Check out Subaru Report where he covers all of the Japanese automaker's models. More stories can be found on the Torque News Subaru page. Follow Denis on Facebook, Twitter, and Instagram.

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Photo credit: tm_subarusalesspecialist Schumacher Subaru of West Palm Beach