Toyota Hit by Chip Shortage - Production Cut News Thread

[Last Lemming]

40% reduction in Toyota production

If I’m wrong, you can blame my wife, she was reading me this so I don’t know the source. But assuming it’s true would this include Supra’s? I know Supras are built with Z4’s so IDK.

I’m from Louisiana and I can tell you for sure there will be people needing cars.

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[gdi2290]

yes

 

[Sigg]

It's much higher, I believe they are reducing US market from 140k to 60kish. Could go even lower. These are desperate times. Germans will be even more affected.
-Supra uses Bosche DME. China controls Flow of rare earth minerals, Taiwan is the greatest producer of chips in the world by far. Dwarfing everyone else.
-China wants to take Taiwan, even by invasion.
-Market is now choked in Asia East.
-Covid ruined global shipping times
-Human labor at all time low globally due to Covid19 and other factors.
-Will take Samsung investing billions of dollars 10 years to get to current level of production TSMC is at.
-USA has no path to ramp up this level of production.
-Taliban now controls 3 trillion dollars worth of lithium and rare earth minerals.
-America holds sanctions against Taliban
-China is aiding Taliban, soon China controls 99% of market. They currently hold at least 80% of Rare earth
-America confused and still bickering while The west coast burns, east coast sinks and the economy plummets.
-Germany not even making V8s due to parts shortage, how do you think their chip sourcing and logistics go? Very bad
=Very few Supras coming in 22-23 but also very few of anything cool.

 

[Supra Cat]

It's much higher, I believe they are reducing US market from 140k to 60kish. Could go even lower. These are desperate times. Germans will be even more affected.
-Supra uses Bosche DME. China controls Flow of rare earth minerals, Taiwan is the greatest producer of chips in the world by far. Dwarfing everyone else.
-China wants to take Taiwan, even by invasion.
-Market is now choked in East.
-Covid ruined global shipping times
-Human labor at all time low.
-Will take Samsung investing billions of dollars 10 years to get to current level of production TSMC is at.
-USA has no path to ramp up this level of production
-Taliban now controls 3 trillion dollars worth of lithium and rare earth minerals.
-America holds sanctions
-China is aiding Taliban, soon China controls 99% of market. They currently hold at least 80%
-America confused and still bickering while The west coast burns, east coast sinks and the economy plummets.
-Germany not even making V8s due to parts shortage, how do you think their chip sourcing and logistics go? Very bad
=Very few Supras coming in 22-23 but also very few of anything cool.

Wow. I'm going to have a drink and go back to bed now...

 

[supraboi]

If I’m wrong, you can blame my wife, she was reading me this so I don’t know the source. But assuming it’s true would this include Supra’s? I know Supras are built with Z4’s so IDK.

I’m from Louisiana and I can tell you for sure there will be people needing cars.

Google is your friend lol.

https://www.caranddriver.com/news/a37364490/toyota-cutting-global-production-not-tundra/

https://www.bbc.com/news/business-58266794

https://www.cnbc.com/2021/08/19/toy...r-production-due-to-global-chip-shortage.html

https://europe.autonews.com/automakers/toyota-will-cut-global-output-40-chip-shortage

https://www.abc.net.au/news/2021-08-20/toyota-slash-car-production-over-chip-shortage/100392630

 

[Snowman]

It's much higher, I believe they are reducing US market from 140k to 60kish. Could go even lower. These are desperate times. Germans will be even more affected.
-Supra uses Bosche DME. China controls Flow of rare earth minerals, Taiwan is the greatest producer of chips in the world by far. Dwarfing everyone else.
-China wants to take Taiwan, even by invasion.
-Market is now choked in East.
-Covid ruined global shipping times
-Human labor at all time low.
-Will take Samsung investing billions of dollars 10 years to get to current level of production TSMC is at.
-USA has no path to ramp up this level of production
-Taliban now controls 3 trillion dollars worth of lithium and rare earth minerals.
-America holds sanctions
-China is aiding Taliban, soon China controls 99% of market. They currently hold at least 80%
-America confused and still bickering while The west coast burns, east coast sinks and the economy plummets.
-Germany not even making V8s due to parts shortage, how do you think their chip sourcing and logistics go? Very bad
=Very few Supras coming in 22-23 but also very few of anything cool.

Yep, yep, yep. At some point this we need to exit this ride and it's not going to be pretty.

 

[OneTimeAccount]

Will this keep used Supra prices high?

 

[VegasSpeed97]

I read something in the past few days to support this. So many think it will be fixed by January but they are dead wrong. The car market is F'd up for awhile. So cool cars are going to be hard to come by these days. prices just got worse for everything.

 

[puzzled]

Wow. I'm going to have a drink and go back to bed now...

Good thing the chips I like are the edible kind.. nom nom. Good time to take a break indeed.

 

[digicidal]

Good thing the chips I like are the edible kind.. nom nom. Good time to take a break indeed.

Unfortunately (or fortunately in your case) those are about the only chips that the US is still manufacturing. Outsourcing everything was a great idea wasn't it?

 

[supraboi]

Will this keep used Supra prices high?

Not just Supras, have you seen the prices for used cars in general? People be wanting $5k+ for 15-20yr old POS that would have went for $500 to a grand pre-Covid. ?

 

[Last Lemming]

I’m afraid they will get a major premium right now.

 

[Thill444]

If you’ve been watching the news both Ford and GM have come out and said they will be changing their business model. Dealers used to have a 90-120+ day supply of cars on the lot. No more. Dealers will be allowed to have about a 30 day supply goimg forward. This has nothing to do with semiconductors.

They have realized that by keeping supply very low they don't need rebates and incentives. If you look at their profits over the last year, profit is up even though they are selling fewer cars. They are also able to raise prices and push people into more expensive vehicles due to demand and by not having excess stock of lower cost vehicles that have little to no profit (and might even be a loss for them if they have to push big incentives to sell them).

Expect more car manufacturers to follow. Makes sense. Keep deman up by low supply and make more money.

 

[XtremeMaC]

That's a lot of idling on OEM plants and supplier plants..but if they all switch, who knows...

 

[digicidal]

That's a lot of idling on OEM plants and supplier plants..but if they all switch, who knows...

Despite being worse in US than in many parts of the world - a dearth of competent, willing employees is a secondary problem. It's likely when many of those plants reopen they will be under-staffed as well... which further contributes toward "lean" operations in the near future.

So the choices for many in the supply chain will be A) raise prices even higher to allow for increased compensation & benefits or B) scale down operations to the leanest possible without having to close altogether.

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