Despite being rumoured to have built a stockpile of microchips, Toyota has succumbed to the global shortage of the tiny components and has announced that it will have to slash worldwide vehicle production by 40% next month.
It’s a story that keeps coming around, because it is actually making serious inroads into the global car industry and we will suffer the trickle down effect for years to come.
And now Toyota, the world’s biggest carmaker, has been hit. Instead of the 900,000-odd cars it planned to build next month it will produce around 540,000 vehicles.
Volkswagen, the world’s second-biggest car producer, has also now warned that it might have to cut output.
So why is this happening? Covid. Yes, Covid. The virus and the lockdowns around the world saw demand for appliances that use chips soar. These include phones, TVs, games consoles, etc.
Week by week we’re hearing of the manufacturers of all manner of goods being hit by the shortage, but the car sector seems to be being hit worse than others. GM, Ford and Nissan, as well as plenty of others, have all cut back their output.