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Toyota produces 80,000 vehicles a month globally as chip shortages continue

Toyota has been leading global auto production for two years now, but persistent chip shortages and supply chain problems related to the Russo-Ukrainian war are major concerns.

Via : Automatic table HT
Update on:
March 17, 2022, 01:32 PM

File photo: The Toyota logo is seen at its booth during a media day for the Auto Shanghai show in Shanghai, China (REUTERS)
File photo: The Toyota logo is seen at its booth during a media day for the Auto Shanghai show in Shanghai, China (REUTERS)

Toyota Motor Corporation said it will produce about 800,000 cars globally each month, and that this is due to a prolonged shortage of semiconductors that have reduced output. In its home country of Japan, Toyota has announced it will cut production by 20% in April, 10% in May and 5% in June.

In a statement released by the company, Toyota said that because it is difficult to predict how international factors will play out – this includes the situation of the chip crisis as well as the impact of the Russo-Ukrainian war. For the supply chain, the actual output may be uneven. lower than the number 80,000 given up to the present time. How this is likely to affect its production numbers for the full year will be interesting to see as the company has led all auto brands in this respect in 2020 and 2021, beating second Volkswagen CHILDHOODS. Experts say that the Covid situation and chip shortage do not affect Toyota as badly as other auto giants such as Volkswagen, GM, etc. Ford and others. But the current situation remains precarious, for Toyota as well as other global brands. (Read more here)

If the chip shortage itself is not an unprecedented obstacle, the Russia-Ukraine war has affected the supply chain in many parts, to different degrees and for different car brands. . For example, the supply of neon lights is particularly affected because Ukraine supplies 70% of the world’s gas needs. Neon is needed for lasers, necessary for microchip manufacturing. Many feel that although the impact from this may not be felt immediately in the future – also because neon suppliers are well prepared, it could be a concern if the Russian war- Ukraine continues unabated in the near future.

According to Toyota Purchasing Manager Kazunari Kumakura, production is at a normal level but not enough to recover lost production.

Date of first publication: March 17, 2022, 01:32 PM IST

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