Global chip shortage hits Toyota, 40% production fall next month

KUALA LUMPUR: The problem of chip shortage is a long and tedious one, affecting many automakers and their production process. So, far Toyota managed to avoid any significant production halt due to the chip limitation, but its happy days seem to have ended. Speaking figuratively, there will nearly 40% fall in the automaker’s global production. The automaker will have ideal plants in several parts of the world, including Mexico, the US, and Canada.

This production pause is the first major of its kind after the semiconductor shortage earlier this month, affecting vehicle production globally.

Through September, Toyota could lose approx 360,000 vehicles, with Toyota North America alone losing 60,000 to 90,000 units, as reported by Automotive News. Now, that’s a substantial figure, however, the production halt isn’t affecting every model. For instance, Toyota trucks continue to be a fav and the automaker plans to keep the Texas factory running that manufactures the Tacoma. That’s not all, the automaker is prepping the plant for the next-generation Tundra.

How Toyota is prepping up with the chip shortage?

The automaker has published a partial schedule explaining the factories status. Here some plants are shown ideal for a few days, while others will remain completely closed in September. Also, all-new Land Cruiser 300 production will remain closed from 3 to 30th September.

Overall,the chip shortage has centred a lot of tension in the auto industry as automakers navigate a sharply constrained supply chain of chips. As a result, automakers are landing on strange resorts, for instance in Brazil, VW Fox is missing the infotainment screen, Ford is supplying unfinished units to the dealers, and Jeep halted the production of Gladiator.

We don't know when or how this shortage will be resolved, but we hope it happens soon.

Also Read: Toyota and Lexus to resume operations in Malaysia