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’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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Apparently our automotive industry has paid off, the world is reliant on our automotive chip supply. Bravo to NAP!
Making Malaysia Great Again!
Betuii! Those high tech Toyota cars require many chips. Great toyota cars come to those who wait , bravo Toyota!
It is the semiconductor industry which produces the electronic chips, not the automotive industry.
Without our significant automotive presence they would have no reason to setup automotive chip plant here.
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.
Semicon for consumer products, not automotive. Bosch, Delco wouldn’t be here if it weren’t for our local automotive scene.
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.
Stay Strong Toyota
“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?