Toyota Cuts Fiscal-Year Production Target
Continuing chip shortage bedevils world’s biggest carmaker, which falls short of a new record.
Semiconductors are still in limited supply, narrowing carmakers' outputs.
IMAGE: Getty Images/Ismed Syahrul
The semiconductor shortage continued to cause headaches in the automotive industry as Toyota said it won’t meet its fiscal-year output target due to the lingering chip scarcity.
The concession came months of sticking with its initial goal of 9.7 million vehicles in the year ending March 31. It said it will produce 800,000 vehicles in November and pause work at its plants in Japan. That’s about 100,000 short of its former target.
The original output goal was still significantly above its record of 9.08 million vehicles. Continued industrywide supply issues ultimately made it elusive.
J.P. Morgan Research forecasted in August that the general chip supply would increase in the second half of the year and that the shortage is nearing its end, but that Volkwagen estimated supply would likely continue to be inadequate to meet automotive industry demand until 2024.
The U.S. government is investing billions of dollars into domestic production of semiconductors, in part to wean its markets off of Asian suppliers, particular in China.
Meanwhile, Forbes reported that a black market in chips is thriving due to the shortage, some of them substandard in quality.
Originally posted on Auto Dealer Today
More Showroom
California Sees Quarterly Gains
California’s new-vehicle market saw a boost in hybrids in the third quarter and its first overall quarterly market gain of the year.
Read More →
New-Vehicle Prices Stay Put
Affordability pressures and model availability shaped new-vehicle sales in September, according to an analysis by Kelley Blue Book.
Read More →
EV Buyer Consideration Shifts
What drives American consumers to purchase an electric vehicle is shifting as the question moves away from Should I?' to 'Which features and experience do I want to have?'
Read More →
Year-to-Date Auto Sales Holding Their Own
A forecast through August shows that automakers have shifted strategies to keep deliveries and revenues up despite tariffs and other economic challenges.
Read More →
Slow to Robo
Ten years of polling consumers shows autonomous vehicles’ profiles have risen considerably, but even more people now want at least some level of control if they go that route.
Read More →
Dealers a Little Down
A third-quarter Cox Automotive survey finds them in a mixed mood, bummed by fallen customer traffic but encouraged by better profits, costs and EV interest.
Read More →
European EV Sales Skyrocket
The EV market on the continent held strong in July with almost 25% of new-car sales being fully electric units, a stark contrast to the U.S., where EV sales declined about 42%.
Read More →
Mitsubishi Unveils U.S. Plan
The automaker announced a strategy that includes an expanded lineup and dealership presence, along with more ‘rugged’ and electric models.
Read More →
Used Lots Getting the Business
Many consumers are seeking out the units to save money, and the demand – higher in July than normal – is keeping supply limited and prices up.
Read More →
Used Market Stabilizes
The Carfax Used Car Index noted a major drop in used-vehicle price increases in July after several months of hikes.
Read More →