Home News Semiconductor

Toyota cuts show chip shortage ravages even best supply planners

Bloomberg8/19/2021 8:40 PM GMT+08  • 3 min read
Toyota cuts show chip shortage ravages even best supply planners
The spread of Covid and lockdowns are impacting Toyota's local suppliers
Font Resizer
Share to WhatsappShare to FacebookShare to LinkedInMore Share
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

Toyota Motor Corp.’s efforts to stockpile enough chips and other key components to ride out supply disruptions only protected the company so long before it too succumbed to the shortages eviscerating automakers.

The manufacturer will suspend production at all of its 14 Japanese assembly plants for various lengths of time through next month. The impact of these cuts will be harshest in September, with Toyota slashing its production plan by 40%, though risks will carry forward beyond next month.

It’s the latest sign even the best supply-chain planning is proving no match for a pandemic that virtually ground the auto industry to a halt a year ago and has plagued efforts to restore production. Toyota and BMW AG -- two manufacturers least scathed by the semiconductor shortage in the first half -- have now warned of significant blows to their operations in the coming months.

For more insights on corporate trends...
Sign In or Create an account to access our premium content.
Subscription Entitlements:
Less than $9 per month
Unlimited access to latest and premium articles
3 Simultaneous logins across all devices
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)
Loading next article...
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
Subscribe to The Edge Singapore
Get credible investing ideas from our in-depth stock analysis, interviews with key executives, corporate movements coverage and their impact on the market.
© 2022 The Edge Publishing Pte Ltd. All rights reserved.