Toyota to cut global production by 15% in November due to lack of chips

The automotive manufacturer Toyota announced on Friday a reduction of around 15% or 150,000 vehicles in its production of November units due to the global shortage of chips and the risk posed by energy problems in China.

The manufacturer will cut its production by Japan in about 50,000 units and international production in about 100,000 units, with which he estimates that the production volume for this month will be between 850,000 and 900,000 vehicles, he detailed in a statement.

This production cut follows the 40% attack between September and October, due to the impact on the operations of Toyota of the resurgence of contagions of COVID-19 in Southeast Asia, which caused problems in its component supply chain.

The production of Toyota in November 2020 it was about 830,000 units, and that of September of this year between 500,000 and 600,000, as well as its estimates for this month, according to figures provided by the company.

“Real production has remained below the levels forecast since August”, he pointed Toyota, which has undergone production readjustments since then, when Japan and other countries in the region were experiencing peaks of new cases of the disease.

The automotive company pointed to the shortage of semiconductors as the main factor for the new cut and company sources told the Japanese newspaper Nikkei that energy problems in China pose a new drawback for receiving components.

“As we expect the semiconductor shortage to continue in the long term, we will consider the use of substitutes where possible. In this way, we will do everything possible to ensure that we deliver as many cars as possible to our customers as quickly as possible. “Toyota said.

Toyota revised down its production forecast for 2021 in September, to 9 million units, 3% less than previously estimated.

The manufacturer maintains this objective after today’s announcement and also its financial forecasts for the current fiscal year, as it believes that the cost reduction will offset the decrease in sales.