Global chip shortage forced Toyota to cut car production
A global semiconductor shortage forced Toyota Motor to cut its global production plans by 40 percent in September. Reported by the Nikkei edition.
According to the report, Toyota intended to create almost 900 thousand cars, but the shortage of chips forced it to cut this number by almost half - to 500 thousand. In addition, Toyota officials said the manufacturer is facing an unpredictable business environment in developing countries due to new coronavirus cases and skyrocketing material prices. By comparison, Toyota produced 840,000 vehicles last September when demand recovered after the coronavirus pandemic.
Semiconductor shortages caused Toyota Motor Corp. shares to fall. by 4.7 percent, as well as the suspension of almost all factories in Japan, which led to a reduction in production plans by 40 percent. Toyota said the operation of 27 lines at 14 factories in Japan, responsible for the production of RAV4, Corolla, Prius, Camry and Lexus RX models, were in jeopardy.
Toyota has kept its profit forecast for fiscal 2021, which ends in March 2022. The company expects to earn 2.5 trillion yen ($ 22.7 billion), well below analysts' forecasts, which had expected 2.95 trillion yen ($ 26.89 billion) from the concern.
The coronavirus pandemic continues to disrupt supply chains and negatively impact parts manufacturing. Earlier, it was reported that the shortage of chips would reduce vehicle production in 2021 and 2022. In the absence of semiconductors, the sophisticated electronics that govern entertainment systems, safety features, and advanced driving aids cannot be installed in a car.