Toyota And Geely’s Warnings Prove Global Chip Shortage Is Sparing No One
Just like the Coronavirus, the global chip shortage doesn’t seem to be disappearing any time soon.
Japanese car giant Toyota announced that it is cutting production by 40% due to the semiconductor shortage.
The cuts affect Toyota’s plants in Japan and will ultimately hit some of its best selling vehicles.
Toyota City, which produces the RAV4 and Corolla, will close from 1 September 2021 to 17 September 2021. Its Tsutsumi plant that produces the Camry and Lexus ES will also be shut during this period.
In America, Tokyo will reduce factory output by between 40% and 60% this month.
Around 60,000 to 90,000 fewer vehicles are expected to be produced due to the cut. Another 80,000 vehicles in North America might also be cut in September 2021.
It’s a similar story for Chinese car maker Geely too.
Despite delivering an inspiring forecast and strong revenue growth, Geely also revealed that the chip shortage is badly affecting them.
“The recent worsening of chip shortage and the resurgence of COVID-19 cases globally could pose significant threat to our sales performance over the next few months,” Geely said.
It nonetheless restored optimism by saying the launch of new vehicles “should enable the group to perform better in the second half.” The company aims to hit 3.65 million units by 2025 with over 30% of that being EVs.
Although Toyota and Geely represent different countries and vastly different markets, it’s clear that the global chip shortage is sparing no one.
To read more about Geely’s Zeekr EV brand, take a look at Bread’s top Chinese car manufacturers that are winning the EV race.
Image credit: Gabriele Stravinskaite on Unsplash