Photo: Toyota
While some industry analysts expected the global chip shortage to ease up towards the end of the year, carmakers are still struggling to keep their production running at full speed, this time due to a painful combination made from the lack of semiconductors and the health crisis.
Toyota, for example, has recently confirmed that the invisible enemy the planet has been fighting with for nearly two years already keeps wreaking havoc at some of its parts factories, and most recently, facilities in Vietnam and Malaysia have also been hit by the same problems.
All of these have caused slowdowns in terms of manufacturing operations, which in turn mean that Toyota can no longer maintain the same speed of assembling vehicles at its other factories.
So at the end of the day, the Japanese carmaker has to deal not only with this slowdown but also with the chip crisis, and in some cases, keeping the production unaffected is nearly impossible.
This is why Toyota has lowered its production target for the year ending March 31, explaining that it expects to build some 300,000 cars less than it originally anticipated. Toyota now plans to make 9 million vehicles, down from 9.3 million units, with no change in terms of operating profit.
On the other hand, Toyota hopes the whole thing would recover in the coming months. The company has already announced a 360,000-vehicle cut in global manufacturing for this month, and it expects the production of 400,000 more cars to be impacted by the end of October.
But despite all the bad news, the Japanese carmaker is still confident it would recover in the next months, so despite the production cut, the numbers would go up again by the end of the year and in early 2022, especially as the company is trying to build up the chips inventory to keep its operations unaffected.
All of these have caused slowdowns in terms of manufacturing operations, which in turn mean that Toyota can no longer maintain the same speed of assembling vehicles at its other factories.
So at the end of the day, the Japanese carmaker has to deal not only with this slowdown but also with the chip crisis, and in some cases, keeping the production unaffected is nearly impossible.
This is why Toyota has lowered its production target for the year ending March 31, explaining that it expects to build some 300,000 cars less than it originally anticipated. Toyota now plans to make 9 million vehicles, down from 9.3 million units, with no change in terms of operating profit.
On the other hand, Toyota hopes the whole thing would recover in the coming months. The company has already announced a 360,000-vehicle cut in global manufacturing for this month, and it expects the production of 400,000 more cars to be impacted by the end of October.
But despite all the bad news, the Japanese carmaker is still confident it would recover in the next months, so despite the production cut, the numbers would go up again by the end of the year and in early 2022, especially as the company is trying to build up the chips inventory to keep its operations unaffected.
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