Toyota cuts November global production due to reduced chip supply from Malaysia, Vietnam – report

Toyota cuts November global production due to reduced chip supply from Malaysia, Vietnam – report

Toyota has reduced its global vehicle output for November by up to 15% due to ongoing chip shortages, though it will be increasing production to meet its full-year target, The Star reported.

The reduction in parts supply over September and October was due to increased Covid-19 infections in Malaysia and Vietnam, which caused Toyota to cut its full-year production to March 31 by 300,000 vehicles to nine million vehicles, according to the report.

However, the Japanese automaker aims to restart production that had been previously affected by the component shortages to recover around one-third of the lost output volume due to supply disruptions, sources familiar with its plans told Reuters.

The automaker held on to its full-year production forecast as of last Friday, indicating that it plans to ramp up production for the remainder of the business year. This banks of the decline on Covid-19 infection rates in Southeast Asia to enable its supplier’s chip factories to increase output, The Star noted.

Toyota cuts November global production due to reduced chip supply from Malaysia, Vietnam – report

Toyota’s request to its suppliers for the increase in chip production is in order for the carmaker to manufacture an additional 97,000 vehicles between December and March next year, with some of those considering additional weekend shifts to meet the added demand, sources told Reuters.

“I can’t predict what is going to happen, but I think we are through the worst period of lower production risks,” Toyota deputy chief officer Kazunari Kumakura said in an online briefing according to The Star.

Toyota was among the last of the major automakers to scale back its production plans due to parts shortages, and it has also already fortified its supply chain against disruptions following the 2011 earthquake in Japan.

In addition to factory closures due to pandemic-led lockdowns, the component supply shortage was compounded by added semiconductor demand as homebound customers bought more consumer electronics, Reuters observed.

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Mick Chan

Open roads and closed circuits hold great allure for Mick Chan. Driving heaven to him is exercising a playful chassis on twisty paths; prizes ergonomics and involvement over gadgetry. Spent three years at a motoring newspaper and short stint with a magazine prior to joining this website.

 

Comments

  • Make Malaysia Great Again on Oct 18, 2021 at 12:15 pm

    Apparently our automotive industry has paid off, the world is reliant on our automotive chip supply. Bravo to NAP!
    Making Malaysia Great Again!

    Like or Dislike: Thumb up 18 Thumb down 6
    • Rakyat Malaysia on Oct 18, 2021 at 12:33 pm

      Betuii! Those high tech Toyota cars require many chips. Great toyota cars come to those who wait , bravo Toyota!

      Like or Dislike: Thumb up 15 Thumb down 7
    • jgn merepek da on Oct 18, 2021 at 6:12 pm

      It is the semiconductor industry which produces the electronic chips, not the automotive industry.

      Like or Dislike: Thumb up 5 Thumb down 5
      • Darren on Oct 19, 2021 at 1:25 pm

        Without our significant automotive presence they would have no reason to setup automotive chip plant here.

        Like or Dislike: Thumb up 2 Thumb down 1
        • jgn merepek lagi da on Oct 20, 2021 at 10:26 am

          The semiconductor industry started operations in Malaysia during the early 1970’s, before cars & other motor vehicles needed electronics to run their engines, transmissions & other systems, and it was also before Proton. Therefore, the semiconductor industry does not really need to exist only for the automotive industry, as electronic chips & components have been & still are used for non-automotive applications for decades.

          Like or Dislike: Thumb up 1 Thumb down 1
          • Lolwhut? on Oct 21, 2021 at 12:53 am

            Semicon for consumer products, not automotive. Bosch, Delco wouldn’t be here if it weren’t for our local automotive scene.

            Like or Dislike: Thumb up 0 Thumb down 0
          • jgn lol sambil merepek da on Oct 21, 2021 at 2:44 pm

            Unfortunately, there are still those who are unaware that the semiconductor industry does not only supply chips for consumer electronics, but also for automotive & other applications. May be most people could not see this because the automotive industry represents about 10% of the global semiconductor chip demand.
            When Bosch announced that it is setting up a semiconductor manufacturing & testing plant in Penang, Bosch Malaysia’s MD said, “This new site is also intended to strengthen on the matured eco-system for the semiconductor industry here in Penang.” In addition, Bosch Malaysia’s corporate communications had written on their website that Penang was chosen as the location within Southeast Asia because there is a high level of semiconductor knowledge in the region. No doubt, the presence of the semiconductor industry in the country since the early 1970’s had helped to influence Bosch’s business decision.

            Like or Dislike: Thumb up 0 Thumb down 0
  • Roger on Oct 18, 2021 at 11:26 pm

    Stay Strong Toyota

    Like or Dislike: Thumb up 6 Thumb down 1
  • Electrician on Oct 19, 2021 at 11:09 am

    “the component supply shortage was compounded by added semiconductor demand as homebound customers bought more consumer electronics”

    Really? SOC’s for cars are used now for consumer electronics?

    Like or Dislike: Thumb up 1 Thumb down 1
 

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