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The World’s Number One Carmaker Has Nothing But Bad News About the Chip Shortage

As if it wasn’t already obvious, Toyota has come up with more bad news on the chip shortage, once again confirming that the semiconductor crisis is here to stay.
Toyota says it would suspend operations at 6 plants 11 photos
Photo: Toyota
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While everybody expected the constrained inventory to improve in the second half of the year, it just looks like the automotive industry is going from bad to worse, with carmakers struggling to find the necessary chips to keep the production going.

Unfortunately, this is sometimes impossible, and this is why Toyota is now turning to a series of measures that can’t be by any means good news in the short term.

The company is not only reducing its production target for the month of August but also halting manufacturing at several facilities in Japan, all because of its efforts to reduce the disruptions caused by the global chip shortage and other problems across the world.

Toyota originally wanted to build 850,000 cars next month, but it’s now reducing the target to 700,000 vehicles, as the company says the output is being slowed down by the shortage of semiconductors. The 18 percent cut doesn’t seem to affect the company’s annual sales target, as Toyota still aims to produce 9.7 million units by March 2023.

On the other hand, the chip shortage keeps wreaking havoc in terms of production lines, as the Japanese carmaker has no other option than to temporarily stop operations at some of its domestic facilities.

No less than six production plants and nine lines will be impacted by this production suspension, with Toyota explaining that the halt would last between one day and no less than 18 days.

Needless to say, Toyota isn’t the only company that’s struggling with the chip shortage, but as the world’s number one carmaker, its decision to cut the production target and temporarily suspend assembly lines is nothing but confirmation that the semiconductor crisis isn’t going anywhere this year.
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About the author: Bogdan Popa
Bogdan Popa profile photo

Bogdan keeps an eye on how technology is taking over the car world. His long-term goals are buying an 18-wheeler because he needs more space for his kid’s toys, and convincing Google and Apple that Android Auto and CarPlay deserve at least as much attention as their phones.
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