Toyota, other automakers halt production due to global chip shortage

Updated Jan 11, 2021 | Same topic: Automotive Industry Updates

Certain models will be delayed as facilities are temporarily shuttered.

Semiconductors have become an integral part of the modern automobile, with active roles in engine management, climate control, onboard entertainment, and crash safety. But a worldwide supply problem is leading car brands to cut back on manufacturing certain models.

Toyota Tundra

Toyota will be cutting back on Tundra production in its U.S. facilities

Toyota Motor has announced that it will be scaling down assembly of its Tundra pickup model in San Antonio, Texas, because of a chip shortage. The problem has been apparent since December 2020, when a company representative explained to Japanese auto parts companies that it wasn’t sure whether there were enough semiconductors to sustain production.

Fellow Japanese automaker Nissan said it will be reducing the output for its flagship Note hybrid model by 5,000 units for January, from the original 15,000 scheduled. Honda will also be making production cuts by around 4,000 units, mainly affecting the Honda Jazz subcompact.

Honda Fit

Honda Japan announced fewer units of its Fit hatchback in the meantime, known in our shores as the Jazz

The COVID-19 pandemic has seen a rise in a smartphone, personal computer, and gaming console use as people stayed at home. With the auto industry now experiencing a rebound, microchip suppliers are hard-pressed to keep up with the unexpected demand, resulting in manufacturing delays.

German auto brand Volkswagen declared that it will adjust production in its China, North America, and Europe facilities. The company has stopped churning out its Golf compact model in Germany beginning December 2020, lasting through mid-January 2021.

Ford is putting its Louisville, Kentucky, plant on standby, which builds the Escape and Lincoln Corsair SUVs. Fiat Chrysler will also stop operations at two of its facilities until the end of the month.

Consumer electronics

Smartphones, computers, and gaming consoles took the lion's share of semiconductor supplies

Research by audit group KPMG Japan shows that electric vehicles will be especially affected, as they use twice as much electronics compared to combustion vehicles. Chip supply issues can potentially limit short-term production for car models as a whole, but industry officials say they will be prioritizing production of higher-profit models to soften the financial impact.

There’s no shortage of auto industry updates at

Know more about Toyota


<p>Toyota leads the local automobile industry, distributed by Toyota Motor Philippines. It has a staggering total of 73 dealerships all over the country. It has 27 dealerships in Luzon, 15 in the Visayas, 11 in Mindanao, and 20 in Metro Manila, including Lexus Manila, Inc. for its service centers and sales distribution. TMP has the most extensive car lineup in the country, with its current range consisting of 20 vehicles in total. See the latest price list of Toyota vehicles in the Philippines here.</p>

Joseph Paolo Estabillo

Joseph Paolo Estabillo


Joseph has been a member of various car clubs since he got his driver's license in 2004 – old enough to remember riding in taxicabs with analog meters, but his fascination with cars goes way back. After nearly two decades of working in broadcast media, he shifted gears by coming on board as Philkotse’s first Filipino member and staff writer in 2017.

Apart from his role in Philkotse as Content Team Lead, Joseph has written episodes for Drive, which has been airing on CNN Philippines for five seasons running. He has also delivered content for various car dealerships based in the U.S., spanning multiple brands such as Alfa Romeo, Maserati, Jeep, Dodge, among others.

Keeping his hopes high and his revs low, he dreams about owning a Kei car when he retires. Hates slow parkers.

View more