Toyota to cut production in September due to chip shortage


Toyota will significantly reduce production levels around the world in September due to the semiconductor chip shortage that has derailed global manufacturing in several industries.

According to reports, the Japanese company intends to build 540,000 vehicles next month, 40% below its initial target of 900,000.

In total, 27 of its 28 production lines at 14 factories in Japan will be affected, with factories in the United States, Europe and Asia also facing disruption. However, Toyota has confirmed to Autocar that its UK facilities at Burnaston and Deeside are “currently operating as intended” and are not expected to be affected.

Three European factories, in France, Turkey and the Czech Republic, will go into temporary closure, with measures at the Czech factory in Kolin – where the city car Aygo is built – already underway.

Earlier this year, Ford predicted it could lose 50% of its capacity due to the chip shortage, due to the Covid-19 pandemic. Volkswagen also expected a “considerable challenge” in the second quarter and told Reuters it could not guarantee further cuts in production.

Nissan, Honda and Jaguar Land Rover are among other manufacturers to cut production, as new registrations fell in the UK last month.

Toyota has fared better than most of its competitors so far thanks to a large stockpile of semiconductor chips, maintained by a company policy adopted following the 2011 Fukushima earthquake and tsunami. .

However, it has also faced a shortage of parts resulting from a spate of Covid-19 cases in Southeast Asia, with several models affected.

Toyota had planned to build 9.3 million vehicles worldwide by the end of the fiscal year in March 2022 and the company insists it is sticking to that target.

“Toyota is making great efforts to minimize the impact of the semiconductor supply shortage that is affecting the automotive industry globally,” a spokesperson said. “Toyota Europe [TME] works diligently with the supplier network to limit the additional impact on production and makes every effort to deliver vehicles to our customers as quickly as possible.

“TME will strive to recover the lost volume and aims to maintain its European sales plan for calendar year 2021.”


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