Toyota Hit by Chip Shortage - Production Cut News Thread

[RenRed2]

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.

True and kill the mass sales market they built over time. If they go too far with this = competition from other FOREIGN makers who will simply under cut them. The Big 3 are fools if they think this is a wining long term move lol. Its simply opening a door to be abused by your competition.

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[XtremeMaC]

I know for a fact that a good chunk of labor requires hefty training, following guidelines, work instructions, etc.
When they shut operations down, people forget shit. They'll have to revamp their before-shift trainings and even quality inspections a notch to get same quality.
In addition there lot's of turnaround in these labor, so, who knows if they'd even be able to find people. Maybe increased wages, some discussions with unions...
Also known fact is, every time the machines turn off and on, they require calibration, etc.

Some article about Toyota shutting operations:
https://www.autoblog.com/2021/09/05/toyota-manufacturing-covid/

 

[supraboi]

So I just stopped by my local Toyota dealer and 3/4 of the lot is sitting emptied.

 

[Grady60]

https://www.reuters.com/business/au...ction-target-shortage-chips-parts-2021-09-10/

 

[vb22]

Why not just add it to this thread?

https://www.supramkv.com/threads/40-reduction-in-toyota-production.10688/

 

[Grady60]

Why not just add it to this thread?

https://www.supramkv.com/threads/40-reduction-in-toyota-production.10688/

I think its an additional cut, since this story was written yesterday

 

[NitroYellowMKV]

So what I'm hearing is that the whole world is absolutely fucked.

 

[vb22]

I think its an additional cut, since this story was written yesterday

Right, but it's just another 300k unit. It's probably just best to keep all production cut news here.

 

[johnny_10196]

 

[Grady60]

So what I'm hearing is that the whole world is absolutely fucked.

Basically. “They” are saying things won’t get back to “normal” until 2023. Let’s hope manufacturers learn something from this.

 

[PhantomCypher]

If we get a 40% cut does that equate to a 40% price increase for used??

 

[Zupra1776]

Will this keep used Supra prices high?

This will keep the price of everything high so while yes a used supra will retain an inflated value so will literally everything else. So it's really volatile inflation more than increase in value.

 

[Zupra1776]

Basically. “They” are saying things won’t get back to “normal” until 2023. Let’s hope manufacturers learn something from this.

??????? American manufacturing is dead and likely will never come back until required to aid in war efforts, and the one American manufacturing sector that has been on a rapid incline they are doing everything possible to completely obliterate.

Hint: that sector is predicated around one of your constitutional rights. ?

 

[puzzled]

.. okay, someone tried laughing gas.

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