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Monday, 23 August 2021 21:23

Toyota Finally Slashes North American Production

Written by Steven Symes, Motorious

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The latest victim in the ongoing microprocessor chip shortage for the automotive industry is Toyota’s North American operations.

As reported in multiple major media outlets, production of Toyotas on this continent is being scaled back as the auto giant feels the pinch after sidestepping it previously.

 

The chip shortage has been blamed by many on the coronavirus pandemic in Southeast Asia, where the vast majority of microprocessors for vehicles are manufactured, but other factors have cut production dramatically.

 

Production of Toyotas in North America will be slashed by a whopping 40%, affecting lines at 14 different assembly plants. That means in August alone Toyota believes it will make between 60,000 to 90,000 fewer vehicles than normal.

 

The effect on the market will surely be significant, just like we’ve seen as Ford, GM and other automakers have struggled to get new cars, trucks and SUVs to consumers.

 

According to Toyota, North American sales for the second quarter of 2021 were about 661,000 vehicles, 376,000 more than during Q2 of 2020. With a 10% to 15% drop in production, you’ll still be able to find some new cars at dealerships, depending on what model you want.

 

The situation is even more dire in Japan, where the automaker will idle entire plants for the month of September to conserve its dwindling chip supply.

 

Other factories will see a reduction in production. Facilities in Thailand have been shut down temporarily. In total, the company says worldwide manufacturing will drop by 360,000 vehicles for September. However, Toyota still believes it will make 9.3 million vehicles this year since it calculated for some setbacks thanks to COVID-19.

 

Fortunately, PBS is reporting the drop in production won’t come with layoffs in North America as Toyota doesn’t think this will...


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