Monday, 23 August 2021 21:23

Toyota Finally Slashes North American Production

Written by Steven Symes, Motorious


...“have an impact on staffing levels.” Hopefully that continues to be the case as this situation develops.


Back in late May, Motorious ran a feature on how Toyota had completely sidestepped the ravages of the car chip shortage in North America. Yes, the auto giant had scaled down production in other markets, but it was running factory lines like normal here, a fact which was amazing considering the size of the company.


Well, some Ford, GM and Chrysler fans took that news personally, but they’re probably yukking it up at the moment because Toyota is now suffering. What they failed to realize is we didn’t like hearing Ford was really taking it on the nose with the chip shortage, while GM and Stellantis were both suffering quite a bit.


In a market when supply becomes constrained, prices for products and their alternatives rise. That’s true whether it’s Toyotas, Dodges, Chevrolets or Fords that suddenly aren’t as plentiful as before.

Both new and used car prices are ridiculous. It seems used car prices are starting to level out, but they’re not falling.


But this development with Toyota might change that. In other words, we all suffer as a result of Toyota’s stumbling. For that reason alone, we aren’t celebrating chip shortages for anyone. We wish instead there were a surplus of chips for the entire industry.


The chip shortage seems to have been driven by a variety of factors, although most news outlets focus almost exclusively on the novel coronavirus. As Fortune noted recently, the freak winter storm which hit Texas in February shuttered semiconductor factories there. Then a drought in Taiwan at about the same time constrained manufacturing there. In March there was a fire at a Renesas factory in Japan, one of the key chip suppliers for the auto industry.


Call it a series of unfortunate events, the end result is cars both new and used are overly expensive as automakers struggle to make new ones.


We thank Motorious for reprint permission.


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