Only Two US Toyota Models Aren't Affected By Semiconductor Shortage

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Toyota is reducing its global production by 40 percent.

The global semiconductor chip shortage continues to plague the auto industry and is showing no signs of ending soon, forcing manufacturers to make production cutbacks. Toyota, on the other hand, has been largely unaffected by the crisis. The Japanese automaker has been relying on a huge chip stockpile to keep production running, but this supply is starting to run out.

As a result, Toyota announced this week that its global production will be reduced by 40 percent later this month, and now we have a clearer picture of how this will affect the automaker's production output in North America.

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Automotive News reports that Toyota is reducing production at every North American plant next month, except for the San Antonio plant that will produce the next-generation 2022 Tundra. This plant also builds the Tacoma.

"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 plants," Toyota Motor North America said in a statement. "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. ... We do not anticipate any impact to employment at this time."

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In North America, Toyota will produce between 60,000 and 90,000 fewer vehicles in August. Production is also expected to be cut by 80,000 vehicles in September. In the first seven months of 2021, Toyota has produced 1.13 million vehicles in North America, but production was cut short by 65,000 vehicles in July.

With global production slashed by 40 percent, Toyota expects to lose 360,000 vehicles in September. This is bad news for car buyers, too. With inventories running low, dealers are adding ridiculous markups to new and used vehicles that are usually affordable. Case in point: last month one dealer increased the price of the Mitsubishi Mirage, one of the most affordable cars in America with an MSRP of $14,295, to $24,000.

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