Toyota to cut global production by 40%, but not the new tundra

  • Instead of building 900,000 vehicles in September, Toyota announced this week that it will manufacture around 540,000. This is the first massive drop for the automaker, which so far has weathered the pandemic storm relatively well.
  • In North America, production in August and September will drop to 170,000 vehicles.
  • There is one North American factory that will continue to operate at full capacity, and it is the one that will build the new Tundra, which is finally being updated with a new generation after more than a decade.

    Until this stage of the pandemic, and despite the problems faced by other automakers with the lack of components, especially semiconductor chips, Toyota has managed to keep its production plants operating relatively smoothly. One of the main reasons for this was a strategic shift made by the automaker in the wake of the Fukushima earthquake and tsunami in 2011. The updated plan relied less on the “just-in-time” component delivery system. “that Toyota had been using for decades and more on component storage for emergency use. .

    As Automotive News wrote in 2016, Toyota’s updated system included a database called Rescue that “stores information on thousands of parts stored at 650,000 supplier sites, helping the automaker bypass bottlenecks when a supplier is taken out of service “. It’s a system that works well until many vendors, not just one, are phased out.

    That’s why Toyota announced this week that it will dramatically cut output at its factories around the world, reducing expected production from around 900,000 cars in September to 540,000. Speaking on Bloomberg Television this week, the vice Toyota Motor North America (TMNA) executive sales chairman Bob Carter said production issues aren’t limited to microchips, although they’re a big part of the problem. Some production changes will begin in August, and Toyota’s North American facilities will build between 140,000 and 170,000 fewer vehicles during those two months. ASMR sent Car and driver a statement on the situation:

    “Due to COVID-19 and unexpected events with our supply chain, Toyota is experiencing additional shortages that will affect production at most of our North American factories. While the situation remains fluid and complex, our manufacturing and supply chain teams have worked diligently to develop countermeasures to minimize the impact on production. In North America, we expect a reduction of about 60,000 to 90,000 vehicles in August. As for September, we expect a reduction of 80,000 vehicles, but the situation remains very fluid. We do not anticipate any impact on employment at this time.

    There is, however, one North American plant that Toyota is not handling during this round of production cuts, and it is the San Antonio plant that is currently making the Tacoma and is set to start building the highly anticipated 2022 Tundra. “In order to meet our schedule and production schedule for the new Tundra, we need to complete production of the current models within a certain time frame,” said Toyota spokeswoman Melissa Sparks. San Antonio Express News. “If we are delayed due to chip shortages, we cannot meet those milestones. So that’s why we are prioritizing chips” for the San Antonio plant.

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