Please ensure Javascript is enabled for purposes of website accessibility

Subaru Suspends All U.S. and Japanese Operations

By Howard Smith – Apr 1, 2020 at 11:09AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The automaker announced a temporary closure of its plants due to pandemic impacts.

Subaru Corporation (FUJHY -3.44%) today announced the planned suspension of all Japanese operations after having already temporarily closed its U.S. facilities. This is just the latest auto industry announcement related to plant closures due to the impacts from the spread of COVID-19.

On Tuesday, Ford Motor Company (F -2.35%) said that it would delay plans to restart its shuttered North American factories. It had aimed to reopen them starting with a Mexican assembly plant on April 6, 2020, and several U.S. facilities on April 14, 2020. The company now says those dates are postponed until further notice for the safety of its workforce and other stakeholders. 

automaker assembly line

Image source: Getty Images.

Supply chain and demand

Subaru had already announced the closure of its U.S. plant in Indiana through April 6, 2020. It now plans to reopen that plant on April 20, 2020. The Japanese factories will all be shut down on April 11, 2020, with a restart date planned one month later. 

The company specified that the new, and extended, suspensions of production are due to interruptions in the supply chain as well as "a rapid decline in demand around the world," due to the impacts from the spread of and attempts to mitigate the coronavirus.

Other automaker facilities in the U.S. that have suspended operations are being used to help build needed medical equipment to fight the pandemic. Ford and General Motors (GM -3.52%) have both announced these initiatives recently. 

Howard Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Ford Motor Company Stock Quote
Ford Motor Company
$11.20 (-2.35%) $0.27
General Motors Company Stock Quote
General Motors Company
$32.09 (-3.52%) $-1.17
Fuji Heavy Industries Ltd. Stock Quote
Fuji Heavy Industries Ltd.
$7.57 (-3.44%) $0.27

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 10/02/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.