Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Toyota became the latest automaker to reduce production again due to the continued shortage of semiconductor chips. 


The Japanese carmaker announced a 40pc reduction in its targets for September output on Aug 19 attributing the decision to the continued shortage of semiconductor chips, per media reports. However, the company has maintained its annual sales and production guidance. Of the total production, Toyota North America will produce 60,000-90,000 fewer vehicles owing to this issue.


Other carmakers have also announced similar cuts this week citing a shortage of chips. On Aug 18, US carmaker Ford indicated it would temporarily shut down its Kansas City assembly plant that builds its F-150 pick-up trucks due to this issue and a shortage in imported parts due to the rise in COVID-19 cases in Malaysia.


German carmaker Volkswagen also plans to reduce its output in the third quarter and has said that the supply of chips in Q3 2021 is expected to fluctuate and remain limited. 



Leave a Reply

Your email address will not be published.