Toyota Again:

 https://mainichi.jp/english/articles/20211016/p2g/00m/0bu/016000c

Article:

TOKYO (Kyodo) -- Toyota Motor Corp. said Friday it expects global output for November to fall by as much as 15 percent, or 150,000 units, from its initial plan for around 1 million due to difficulty securing parts amid pandemic-disrupted supply chains and a semiconductor crunch.

Despite the production cut, Toyota maintained its output target of 9 million vehicles for the year through March 2022 as it aims to ramp up output in the coming months. The full-year outlook was trimmed from 9.3 million units last month.

Toyota has been known for its robust supply chains, but the spread of COVID-19 has affected its output in recent months.

Ideas:

If Toyota is expecting to maintain is output target, it might mean Toyota is expecting the parts and semiconductor shortage to decrease.

While some BBC articles mention the chip shortage could last into 2022.

While a drop from 9.3 to 9.0 might not seem that much, what does it do for Toyota's profitability overall and how will it effect shareholder value.

There used to be a time when Japanese companies were known for their long term planning and long term outlook and were not so concerned about the quarter to quarter results.

But now it seems eve Japanese companies might be slaves to the quarterly now or never mindset that companies have to take.

It will interesting to see how fast the Toyota supply chains can get back to some kind of normal or are supply chains globally now heading to a new normal situation in the future?

Article:

Automakers have been forced to curb production in response to parts shortages caused by surging coronavirus cases in Southeast Asia that led to factory shutdowns. The global chip crunch had already hit auto manufacturers as the pandemic boosted demand for semiconductors, key components used in everything from game consoles to cars.

Toyota said total production is expected to reach 850,000 to 900,000 vehicles in November, down from around 1 million planned earlier. The production volume compares with about 830,000 in November 2020.

The world's No. 1 automaker by volume said it is cutting output by around 50,000 units in Japan and between 50,000 and 100,000 overseas.

"Since we are still experiencing a shortage of some parts and will be unable to make up for previous production shortfalls, we have adjusted our initial production plans for November," Toyota said in a release.

Ideas:

Any economic situation always has some positives and negatives as an economy is very complicated not all businesses are effected the same way.

The pandemic might have been a boom for the Zoom company along with electronics manufactures of smartphones, tables, notebook computers and PC's.

And of course a lot of negatives globally related to the pandemic.

With the increase in demand for computer relate products has come an increase in demand for chips overall which now might have spread to some shortages related to the auto industry, as chip makers can't match the demand globally.

Then add in the virus situation with factories having to shut down, especially in Taiwan and Southeast Asia and the situation gets more challenging.

And lets not forget the logistics and shipping challenges now globally.

There are a reported 100 container ships sitting in the Pacific outside of the LA and Long Beach ports as they can't unload the ships fast enough.

If Toyota is experiencing shortages and challenges no doubt the other 7 auto makers in Japan are having the same problems.

How are these shortages going to effect car prices or other products in the future with the parts shortage and the logistics challenges globally?

Have a nice day and be safe!