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Toyota Drastically Cuts Global Production Estimates for September

Toyota has decided to cut its September production expectations by 40 percent due to the global chip shortage. The Japanese conglomerate will cut production at all its North American plants except for the San Antonio facility, as well as in its factories found in Europe, and some of its facilities in Asia.
2018 Toyota Camry on the production line 90 photos
Photo: Toyota
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Toyota was supposed to build 900,000 vehicles in September 2021, but the company will only build around 540,000 units globally. Toyota's fourteen factories in Japan, for example, will have production cuts on 27 of its 28 lines. Toyota plants in China are also affected.

According to company officials, the two Toyota factories in the UK, located in Deeside and Burnaston, should not be affected. However, the three Toyota plants in Europe, located in France, the Czech Republic, and Turkey will have temporary shutdowns.

In the U.S., Toyota will temporarily stop production at all facilities except the San Antonio plant, where the next-gen Tundra will be made along with the Tacoma.

Toyota's representatives in Europe expect the company to recover the lost volume and maintain its sales plans for 2021. By the end of the 2021 fiscal year, which is set to end in March 2022, Toyota planned to build 9.3 million vehicles, and the Japanese company still wants to reach that target despite a 40-percent drop in September.

Previous reports noted that Toyota changed its policies on stockpiling parts in 2011, after the Fukushima earthquake, which meant that the manufacturer had a larger stock of semiconductor chips than its competitors. Due to that shift in strategy, the Japanese marque has fared better than its rivals until recently.

Unfortunately for Toyota and the rest of the world, the outbreak of the Delta variant of the Covid-19 virus in Southeast Asia has affected parts supply, as Bloomberg notes. Other automakers have been going through the same problems for a few months now, which means that no company is safe from the global chip crisis.

Dealers are unhappy because of dwindling stock and delivery delays, while customers must wait longer for their orders, if they can even place them, and many have had to pay more for in-demand models, or even used vehicles, because of the global chip shortage.
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Editor's note: Photo gallery shows the 2017-2020 Toyota Camry for illustration purposes.

About the author: Sebastian Toma
Sebastian Toma profile photo

Sebastian's love for cars began at a young age. Little did he know that a career would emerge from this passion (and that it would not, sadly, involve being a professional racecar driver). In over fourteen years, he got behind the wheel of several hundred vehicles and in the offices of the most important car publications in his homeland.
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