SIA, Toyota Tsusho idle production in Lafayette; some workers furloughed

Subaru of Indiana Automotive and Toyota Tsusho in Lafayette are pointing to global supply chain issues as the reason for the pause.

Posted: Apr 22, 2021 1:28 PM
Updated: Apr 22, 2021 2:41 PM

LAFAYETTE, Ind. (WLFI) — Two automotive manufacturers are idling production until May 3, resulting in some employees being furloughed.

Subaru of Indiana Automotive and Toyota Tsusho in Lafayette are pointing to global supply chain issues as the reason for the pause. The disruption has shut down automotive plants far beyond Lafayette and has affected international automakers like Ford, Daimler and Jaguar Land Rover.

SIA blamed "an interruption in the supply of certain parts that use semiconductors," while Toyota Tsusho says "supply chain disruptions have led to a temporary pause in some production," according to statements from both companies.

SIA confirmed some employees are furloughed during the halt in production, although it's unclear how many people are affected. Toyota Tsusho did not confirm any layoffs but noted more than 70 people work at the facility.

SIA spokesperson Craig Koven says most furloughed employees will net 90 percent of their usual pay through a combination of benefits.

"It’s important to note this situation is not unique to Subaru," Koven says in an email to News 18. "The global shortage of semiconductors is impacting most, if not all, automotive manufacturers. Although SIA was able to minimize the impact on production for much longer than many peers, the need to offset the parts shortage became a reality. This decision was not taken lightly and was only done after exhausting every opportunity to keep production running."

Ananth Iyer, a professor of supply chain management at Purdue University, says computer chip manufacturers transitioned to supplying the consumer electronic industry after the the auto industry took a big hit during the pandemic.

He says automakers are ramping up their orders for computer chips as the industry rebounds.

"Well, lo and behold, the auto industry saw a very quick rebound and so they went back to the same people, and now they said, 'Hey, we've already started manufacturing for these guys,'" Iyer says.

The supply of semiconductors could take months to rebound, resulting in higher prices for consumers and fewer fully loaded vehicles with lots of electronic options, Iyer says.

"Well, it takes a while to catch up, very much like what happened with toilet paper and paper towels back in March and April but now magnified because this is industrial capacity," he says.

West Lafayette
Clear
75° wxIcon
Hi: 77° Lo: 66°
Feels Like: 75°
Kokomo
Partly Cloudy
76° wxIcon
Hi: 76° Lo: 62°
Feels Like: 76°
Rensselaer
Clear
72° wxIcon
Hi: 75° Lo: 63°
Feels Like: 72°
Fowler
Clear
75° wxIcon
Hi: 75° Lo: 64°
Feels Like: 75°
Williamsport
Clear
75° wxIcon
Hi: 77° Lo: 65°
Feels Like: 75°
Crawfordsville
Clear
73° wxIcon
Hi: 77° Lo: 65°
Feels Like: 73°
Frankfort
Clear
73° wxIcon
Hi: 76° Lo: 63°
Feels Like: 73°
Delphi
Clear
73° wxIcon
Hi: 77° Lo: 65°
Feels Like: 73°
Monticello
Clear
73° wxIcon
Hi: 77° Lo: 65°
Feels Like: 73°
Logansport
Clear
72° wxIcon
Hi: 76° Lo: 62°
Feels Like: 72°
Comfortable air moves in with sunshine
WLFI Temps
WLFI Planner

Indiana Coronavirus Cases

Data is updated nightly.

Cases: 769875

Reported Deaths: 13999
CountyCasesDeaths
Marion1057621807
Lake570271031
Allen43112700
Hamilton37395426
St. Joseph37377568
Elkhart29801471
Tippecanoe23544231
Vanderburgh23269405
Porter19593327
Johnson18880394
Hendricks18129323
Clark13595198
Madison13590347
Vigo12890256
Monroe12598178
LaPorte12585225
Delaware11170198
Howard10724237
Kosciusko9804124
Hancock8778150
Bartholomew8286157
Warrick8094157
Floyd8063182
Grant7387181
Wayne7244201
Boone7221105
Morgan6934143
Marshall6351117
Dubois6291118
Cass6101112
Dearborn603578
Noble602090
Henry5969111
Jackson518077
Shelby511698
Lawrence4946127
Gibson464296
Montgomery460392
DeKalb457885
Clinton457455
Harrison456477
Huntington419382
Whitley417945
Steuben411760
Miami406773
Jasper402155
Knox390491
Putnam386062
Wabash370984
Adams354456
Ripley352371
Jefferson345387
White340754
Daviess3094100
Wells304581
Greene295585
Decatur293293
Fayette287164
Posey283135
Scott282358
LaGrange278172
Clay275649
Washington255337
Randolph247983
Jennings239949
Spencer239331
Fountain236550
Starke229959
Owen223859
Sullivan222143
Fulton209145
Jay203332
Carroll198522
Orange192356
Perry190639
Vermillion181544
Rush178327
Tipton173448
Franklin172935
Parke156116
Pike143034
Blackford138132
Pulaski123848
Newton123536
Benton109915
Brown106443
Crawford106216
Martin92515
Warren88015
Switzerland8468
Union73610
Ohio58511
Unassigned0429

COVID-19 Important links and resources

As the spread of COVID-19, or as it's more commonly known as the coronavirus continues, this page will serve as your one-stop for the resources you need to stay informed and to keep you and your family safe. CLICK HERE

Closings related to the prevention of the COVID-19 can be found on our Closings page.

Community Events