Toyota Won't Be Celebrating This Independence Day

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The outlook is grim at the world's leading car seller.

Toyota has just announced that it may have to cut its forecasted July production by 50,000 vehicles. Even with this production cut, it still expects to produce 850,000 cars in July.

The reason for the cut in production remains ongoing semiconductor shortages and a COVID-19 outbreak at one of its leading suppliers, but you probably already guessed that part. These issues just keep recurring, no matter where in the world you are.

"As it remains difficult to look ahead due to the shortage of semiconductors and the spread of COVID-19, there is a possibility that the production plan may be lower," Toyota stated in a press release.

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Toyota is not the only manufacturer struggling with the semiconductor shortage and parts availability. Volkswagen lost a lot of sales during the first quarter of 2021 due to chip shortages and not having access to wiring looms made in Russia. At least the wiring loom issue has been resolved, which means VW should have a better second quarter.

In addition to the chip shortage, Toyota has to deal with a new round of COVID-19 outbreaks at some of its third-party suppliers in China. Mazda faced the same issue earlier this year.

"We will examine the parts supply closely to minimize sudden decreases in production and continue to make every effort possible to deliver as many vehicles to our customers at the earliest date," said Toyota.

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Toyota is still keeping its projected vehicle production figure for the entire year unchanged at 9.7 million units. It will likely run additional shifts later in the year once the situation has stabilized. The suspension is applicable at four assembly lines at two plants out of 28 lines at 14 plants. All the plants are located in Japan, and Toyota's US operations are unaffected.

Various US-bound models are still affected by the shortfall though. These models include the Mirai and bZ4X, and Lexus LC, IS, NX, and LX. If you've ordered one of the models mentioned above, your dealer might be in touch shortly to inform you that the wait will be a little longer.

"We at Toyota would like to again apologize for the repeated adjustments to our production plans due to the parts shortage resulting from the spread of COVID-19, and for causing considerable inconvenience to our customers who have been waiting for the delivery of vehicles," said Toyota.

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