Toyota partially stops production amid chip shortage due to COVID-19

When COVID-19 forces Japan’s biggest automaker to slow down, things are more serious than you think. Toyota Motor Corporation has announced a 40 percent reduction in its global output for September, which it blames on a shortage of semiconductors.

A total of 27 Toyota assembly lines across 14 plants in Japan will suspend operations

Production operations will be suspended in 27 out of 28 assembly lines across 14 plants in Japan, effectively stopping much of Toyota’s domestic manufacturing operations through September 2021. This is in addition to production adjustments for August which were previously announced in July.  

The carmaker has been largely successful so far in skirting the pandemic’s effects due to its well-entrenched supply chains, in contrast to its rivals. But even Toyota admits that the pandemic has affected the capability of its contractors to supply electronic chips which are essential to vehicle functions such as infotainment and engine management. The recent surge of COVID-19 Delta variant cases in Southeast Asia is making matters worse.

The GR Yaris hatchback is one of the models affected by the production cuts

Toyota says it expects a global backlog of 360,000 vehicles for September resulting from the stoppage. Its markets in the U.S. and China will experience a shortfall of some 80,000 units each, while Europe will miss out on half that number at 40,000 units. The rest of its Asian operations will lose 8,000 vehicles.

While the list of affected facilities and models is extensive, here are the ones that are relevant to the Philippine market:

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