Since January 11, Japan’s Toyota Motor has suspended the third production line of “GAC Toyota” due to a shortage of semiconductors. According to media reports, the current shortage of cores has affected the global auto manufacturing industry, affecting the United States Ford, Honda and Fiat Chrysler, among others.
Toyota suspends a production line in China
A spokesman for Japan’s Toyota Motor said Tuesday (Jan. 12) that the company has suspended part of its production line in Guangzhou, China, due to a shortage of semiconductors.
The Nihon Keizai Shimbun reported on Jan. 12 that a Toyota spokesman said some production lines at Guangzhou Auto Toyota, a joint venture with China’s Guangzhou Automobile Group, had been suspended since Monday (Jan. 11), but did not disclose the exact time of the suspension or the models affected.
Suspended is the third production line of “Guangqi Toyota”, where the production of cars and SUVs is being reduced. The plan for the four-day shutdown has been disclosed to some suppliers.
The report said that the extent of the production cut depends on the period of suspension, and sources said that it is possible to reduce production by up to 30% compared to GAC Toyota’s January production plan. GAC Toyota’s actual production for 2019 is 670,000 units. The company hopes to come up with a timetable for stable procurement of semiconductors. However, the impact of the semiconductor shortage is expanding worldwide, and Toyota has revealed that it is cutting production of 1 SUV in the U.S.
Shortage of cores has an impact on global auto manufacturing
The chip shortage is now affecting auto production in other parts of the world and spilling over into the U.S., curbing production at major car companies and weakening prospects for a smooth recovery from the Communist virus outbreak.
The Wall Street Journal reports that Ford Motor Co. plans to shut down its Louisville, Kentucky, plant for a week starting Monday (Jan. 11) due to a shortage of chips and a shortage of parts.
Honda, Fiat Chrysler Automobiles (Fiat Chrysler Automobiles, FCAU) and other car companies are also facing chip shortages, forcing these companies to cut production of various models, from large pickup trucks to compact cars.
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