Toyota cuts production in November due to chip crisis

Toyota cuts production in November due to chip crisis
Toyota cuts production in November due to chip crisis

Toyota announced Friday that it will cut production by about 15 percent, 150,000 cars in November, due to a global shortage of chips and power problems in China.
The company said in a statement that it will reduce its production in Japan by about 50,000 units, and global production by about 100,000 units, and that it estimates that the volume of production this month will range between 850 and 900,000 vehicles.

This comes after a 40% production cut between September and October, due to the impact of the resurgence of infection with the emerging coronavirus in Southeast Asia, which caused supply chain problems.

Toyota’s production in November 2020 was about 830,000 units, and last September’s production was between 500,000 and 600,000.

“Actual production has been below the expected levels since August,” Toyota said, as it has scaled back production since then, when Japan and other countries in the region were experiencing peak infections.

The automaker indicated that the shortage of semiconductors is a major factor in reducing its production, but sources from the company told the Japanese newspaper Nikkei that the energy problems in China, a new problem for the receipt of components for the auto industry.

“Because we anticipate that the semiconductor shortage will continue in the long term, we will consider using alternatives where possible, and in this way, we will do everything we can to ensure that as many vehicles as possible are delivered to our customers as quickly as possible,” Toyota said.

Toyota revised its 2021 production forecast in September to 9 million units, 3% lower than previously expected.

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