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Its head office in Japan issued a news release saying that it expects to return to an 800,000-unit level in December, “including the recovery from the impact of the previous production cutbacks.” In December 2020, Toyota’s global production volumes were approximately 760,000 units.
The company said it is maintaining its production forecast of 9 million units for its fiscal year, and “as a result of the cooperation of our suppliers,” will operate all 14 plants and 28 production lines in Japan normally, for the first time since May 2021.
Toyota didn’t actually say how it’s managed to overcome the issues other automakers are facing. It does admit there’s still a shortage of some parts, and it will “continue our efforts to strengthen our supply chain with our suppliers” and will do all it can to deliver as many cars to its customers as quickly as it can.
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Motor Mouth: Why a chip shortage is rocking the automotive world
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What the chip shortage and manufacturer feature deletions mean for consumers
Microchips are essential to many vehicle functions, from ignition to infotainment, but the COVID-19 pandemic shortened the supply. Vehicle sales slowed as people stayed home, and when automakers cut production in response, they didn’t order as many chips from their suppliers. Concurrently, electronics manufacturers boosted their chip purchases, as people ordered more devices for entertainment or to work from home. When auto production resumed, there weren’t enough chips to go around, and ramping up their production isn’t a quick or simple operation.
Some automakers temporarily closed some of their plants, or cut back hard on their production. Ford built vehicles with missing chips and put them in storage until they could be retrofitted, while GM eliminated features such as cylinder deactivation or heated seats . Volkswagen said it won’t be able to make up its missing production in 2021, while Tesla shipped some cars without all of their USB ports.
Both GM and Ford have said they are planning to partner with microprocessor firms to eventually make or control the supply of their own chips as insurance against future shortages.
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