Toyota victim of computer chip shortage

Toyota victim of computer chip shortage

The shortage of computer chips has led to a decline in vehicle production worldwide. This has mostly affected large manufacturers such as VW, Ford and GM, which will significantly reduce production and even suspend it in some plants. One of the victims of the chip shortage is Toyota.

Thanks to large stocks and a lesson learned from 2011, Toyota has successfully dealt with the shortage of computer chips. However, a long-running shortage of chips has forced the Japanese company to reduce vehicle production by almost 50 percent.

In an official statement, Toyota announced that only 1 of the 28 production lines in Toyota’s 14 factories will operate in September, while the remaining will be shut down. In the United States, production will be reduced by almost 100k vehicles, which should not lead to layoffs. Completely unexpected, because this is the biggest production stoppage in the automotive industry in recent history.

Due to this situation, Toyota said: “Due to Covid-19 and unexpected events with our supply chain, Toyota is experiencing additional shortages that will affect production at most of our North American plants. While the situation remains fluid and complex, our manufacturing and supply chain teams have worked diligently to develop countermeasures to minimize the impact on production. ”

How long this situation will last is not known. Many producers expect production to return to normal by the end of the year. Toyota is not so optimistic. They believe that the problem could continue in 2022.

Source: Toyota