Toyota Cuts Car Production Due to Global Chip Shortage

EightImmortals on 20/08/2021 - 09:52
Last edited 20/08/2021 - 10:03 by 2 other users

If you were thinking about buying a car but hesitating here's another thing to consider.

Toyota to cut car production by 40 per cent over global chip shortage

Toyota says it will slash global production for September by 40 per cent from its previous plan, becoming the last major automaker to cut output due to a global chip crunch, but it maintained its annual sales and production targets.

So I guess a 40% production time leads to a 40% increase in delivery times?

40%??

That's almost half in case anyone wasn't paying attention.

Automotive Toyota

Comments

  • brokenglish on 20/08/2021 - 09:58

    Come buy my 2015 Corolla 💰

  • Duckie2hh on 20/08/2021 - 10:08
    +1

    Even with 40% production cut, it is still a better brand than Ford.

    • EightImmortals on 20/08/2021 - 10:14

      In quality (stupid question) or delivery times?

      • KSMLJ on 21/08/2021 - 08:12

        Why not both?

  • orangetrain on 20/08/2021 - 10:14

    Can't make cars without touchscreens and digital driving sticks I guess?

    Gotta kill more Chekovs!

    • subywagon on 20/08/2021 - 12:55
      +1

      Even cars from the 80's have ECU's…

  • paulpavs on 20/08/2021 - 10:15
    +2

    Going from what you included in the headline it stipulates September only, then states it will maintain annual sales and production. My read on this is that chips are delayed in Sept and will be provided through the remainder of the year. If the car you bought was scheduled to be produced in Sept you have a ~60% chance it will be delivered as scheduled, otherwise it could be delayed a few more months.

    That's not to say there isn't a major issue on Silicon and chipsets globally, but lower production in Sept and increased production in Q2,Q3, Q4. They can still make up total number albeit it is hard to do.

    This is happening through so many products and industries its scary…

    • netjock on 20/08/2021 - 11:43
      +1

      will maintain annual sales and production

      That is also what I read. So it is just cutting 40% from increased production figures. I assume they thought they could produce more and take market share from other manufacturers.

      I wouldn't be that worried given the Sydney will be in lock down until at least Christmas and if people go ordering cars now with the hope that lock downs will end then they might as well be giving out lotto numbers.

      That's not to say there isn't a major issue on Silicon and chipsets globally, but lower production in Sept and increased production in Q2,Q3, Q4. They can still make up total number albeit it is hard to do.

      Production and silicon hasn't disappeared it is just all of it has gone into people buying new laptops, tablets and other smart devices as they stay home and not spending money on going out clothes. Now many devices can you have, it isn't like people are growing extra hands and eye balls.

  • Ryanek on 20/08/2021 - 10:18

    During the start of the pandemic, the car manufacturers predicted a down turn in sales so they cancelled a lot of chip orders. However sales picked up but they were now pushed to the back of the queue.

    • netjock on 20/08/2021 - 11:44
      -1

      predicted a down turn in sales

      Same with house prices. Everyone decides to have a gamble on houses, stock markets, crypto.

    • Baysew on 20/08/2021 - 13:51
      +1

      "It's not a race." - said some person who said they were in front of the queue.

  • spackbace on 20/08/2021 - 10:18
    +3

    Toyota says it will slash global production for September

    Toyota said the September cuts included 14 factories in Japan and overseas plants, and that the company would reduce its planned global production that month by around 360,000 vehicles.

    Not to say it won't continue, but yes the article and statements are indicating September production only

    • Brick Tamland on 22/08/2021 - 09:43

      Optimistically hoping that chip production will improve but it seems to be expected that the shortage will get worse.

  • RockyRaccoon on 20/08/2021 - 10:40
    +1

    And its going to get worse

    Investors have piled into the shares of chipmakers as a worldwide shortage shows little sign of easing and as sales of electric cars from China to Europe and the US increase.

    Electric cars will increase demand dramatically

    The more sophisticated the electric car, the more semiconductors it will require. The typical amount of semiconductor parts inside an electric car is increasing rapidly. As options such as blind-spot detectors and backup cameras come to be standard on all automobiles, these functions need semiconductors, and as a result, drive up the need for the valuable metals that comprise them.

  • Euphemistic on 20/08/2021 - 10:54

    So I guess a 40% production time leads to a 40% increase in delivery times?

    Unlikely to be a simple relationship like that. Less production leads to longer waits if the demand remains the same. Even if the demand is the same and production drops permanently you still aren’t necessarily going to get 40% increase in wait time.

  • Drakesy on 20/08/2021 - 11:08
    +4

    If this isn't a genius FOMO marketing move by Toyota then i don't know what is.

    • netjock on 20/08/2021 - 11:46

      Fool those who can't read properly and who thinks they have crystal ball into the future.

      Is full vaccination going to end lock downs. I'd be looking at Israel and UK to answer that question. UK going into winter soon so lets see how it plays out.

  • pharkurnell on 20/08/2021 - 11:33
    +1

    see in Brazil they have shipped cars without radios and shit and just sold them as is - get your radios and shit aftermarket if you want one

  • bloom on 20/08/2021 - 13:44
    +1

    I run my Toyota with a GTX 3080

  • rektrading on 20/08/2021 - 13:51
    -2

    Low supply, high demand, free helicopter money.

    There is so much free money floating around. This is the perfect time for manufacturers to raise the base price.

    • EightImmortals on 20/08/2021 - 14:11
      +2

      Where is all this 'free money' of which you speak?

      • brendanm on 20/08/2021 - 17:25
        -1

        Government is handing it out.

        • EightImmortals on 20/08/2021 - 18:11
          +1

          Sweet! How do I get some?

          • brendanm on 20/08/2021 - 21:39
            -1

            @EightImmortals: Be poor or rich. If in the middle, you'll likely get squat, and will also have to get ready for the absolute tax reaming you'll be receiving in coming years.

  • GG57 on 20/08/2021 - 14:14
    +1

    The issue is old news; other brands have been affected as well:
    https://premium.goauto.com.au/half-a-million-cars-delayed-by…

    Could be worse; in the UK there are shortages of beer and KFC.

    • EightImmortals on 20/08/2021 - 14:25

      Lots of food shortages everywhere ATM and more on the way. Not too bad here so far though even though th price of meat is going through the roof.

  • buy swap sell on 21/08/2021 - 07:58
    +2

    I would rather they reduce production rather than reduce quality and features.

    Some manufacturers have reduced technology and safety in new cars to deal with the chip shortage.

    • Leo Getz on 21/08/2021 - 23:57

      Examples of that?

      • whitelie on 22/08/2021 - 01:44

        This article is from the US but still applicable.
        Mostly taking off the cream than necessary features but still

  • OzHunterNSW on 21/08/2021 - 19:12
    -1

    There will be a dumbing down in car tech… this period will be infamous for a black spot in manufacturing advancements.

    • Brick Tamland on 22/08/2021 - 09:45

      Development for ICE is arguably over. EV will continue at a furious pace. The only thing it affects is mass production

  • KMeister on 22/08/2021 - 01:26

    When you have time, watch this video. It will explain what's going on
    https://www.youtube.com/watch?v=b1JlYZQG3lI&t=10s

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