Production will fall by 40% next month.
Toyota so far has not experienced any production pauses because of the chip shortage. But that streak is about to end. Toyota has found a solution to the problem that plagued almost every other automaker. It is now looking to take nearly 40% of its global production as it idles factories in the US and Canada.
Toyota claimed that it could lose as many as 360,000 vehicles worldwide through September. Toyota North America told Automotive News it could lose between 60,000 and 90,000. TNA’s parent company has estimated that there are 80,000 losses in this region. This is a significant number of cars. However, the production pause has not affected every model. The company intends to continue production at the Texas factory that makes the Tacoma. Toyota is also preparing the factory for the production of the next generation Tundra.
This is the first major production reduction since the semiconductor shortage impacted vehicle production at other automakers earlier in the year. Toyota released a partial schedule showing its production pauses. Some factories will be idle for a few days until the end of September, while others like Century production will remain shut down throughout September. Toyota has stopped production of the new Land Cruiser 300 due to idle from September 3 through September 30.
As automakers try to navigate a tight supply chain, the chip shortage continues its devastating effect on the global automotive industry. This is causing strange results, such as in Brazil where Volkswagen is selling Fox without an infotainment display. Ford is considering sending unfinished cars to dealers, while Jeep stopped production of the Gladiator earlier in the month. Although it is unclear when the shortage will end, it does not appear to be imminent.