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Chip deficiency: Toyota to cut global production by 40%

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 Chip deficiency: Toyota to cut global production by 40%

Chinese workers assemble Toyota SUVs on the assembly line at the FAW-Toyota factory in Changchun City, East China Jilin Province.

Toyota will cut vehicle production throughout the world by 40% in September due to the shortcomings of global microchip.

The largest carmaker in the world has planned to make nearly 900,000 cars next month, but now it has reduced it to 540,000 vehicles.

Volkswagen, the second largest car manufacturer in the world, has warned it can also be forced to cut further results.

Covid pandemic encourages demand for equipment using chips, such as telephone, TV and game console.

On Thursday, the German Volkswagen company, which cut output earlier this year, told Reuters: “We are currently expecting a supply of chips in the third quarter to be very fluctuating and fast.

“We cannot override further changes to production.”

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Other Toyota rivals, including General Motors, Ford, Nissan, Daimler, BMW and Renault, have increased production again in facing global chip deficiencies.

Until now, Toyota managed to avoid doing the same thing, with the exception of eligible summer shutdown for a week in France the Czech Republic and Turkey.

New cars often cover dozens of microchips but Toyota benefits from making greater chip stockpiling – also called semiconductors – as part of improvement in the planned business continuity, developed after the last Fukushima earthquake and tsunami.

The decision to reduce the output has now been deposited by the resurrection of the Coronavirus case throughout Asia hit the supply.

The company will make several cuts in August in factories in Japan and elsewhere.

Most of the cutting – 360,000 – will come in September and affect factories in Asia and the US.

In the UK, Toyota has a car factory in Burnaston, in Derbyshire, and a machine factory on Deeside. In a statement, he said: “Toyota will try hard to minimize the impact of the lack of semi-conductor supply that globally affects the automotive industry.

“In terms of our UK production operations, we currently operate according to plans on oth plants.”

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The purpose for Toyota as a whole is to redeem the lost volume at the end of 2021.

Computer chip

Image Sourgetty images.

Various kinds of businesses from car makers to small tool manufacturers have been hit by lack of chips.

The problem began to emerge last year when Apple had to stagger to release his iPhone, while the latest Xbox and Playstation consoles failed to meet demand.

Since then, one technology company after another has warned its effect.

And last month, the chipmaker boss Intel, Pat Gelsinger said the worst of the global chip crisis had not yet arrived.

Mr. Gelsinger estimates that the drawback will get worse in the “second half of this year” and it will be “one or two years” before the inventory returns to normal.

Lack of encouraging US President Joe Biden to sign the executive order to overcome this problem. He vowed to find $ 37 billion in funding for laws to improve the manufacture of chips in the US.

Toyota shares fell 4.4% on Thursday, their biggest daily decline since December 2018.

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How the shortcomings affect the company:

Renault estimates that the production of the car can fall around 100,000 years

Sony said it was difficult to increase the production of the PS5 console

Apple estimates the impact of deficiencies to worsen and extend to iPhone production

Tesla said it used alternative chips and rewriting software

Taiwan Semiconductor Manufacturing plans to build a new factory in the US and Japan

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