Toyota Output: Updated Feb. 7, 2024.

 

Toyota logs record Oct. output, sales despite production halt

Article Source: https://mainichi.jp/english/articles/20231129/p2g/00m/0bu/020000c

Article:

NAGOYA (Kyodo) -- Toyota Motor Corp. said Wednesday its global output and sales hit record highs for October on robust demand in North America and Europe, despite a temporary production halt in Japan due to an explosion at a parts supplier's factory.

The automaker made 900,285 cars worldwide in the month, up 16.7 percent from a year earlier, and sold 890,241 vehicles globally, up 7.0 percent, the company said.

The pace of production picked up amid an easing semiconductor shortage, and its production outside of Japan increased 8.7 percent to 617,590 cars, an all-time high for a single month, it said.

Ideas:
Japanese car production is an economic driver for the Japanese economy, meaning, as a major export it helps the Japanese economy grow.

At the same time, a car company like Toyota probably has thousands of subcontractors who provide any number of auto parts and services, that also increases jobs and economic growth.

It needs to be understood, unfortunately, that large companies like Toyota can and might wield its economic power, market power, with maybe not so good parts prices for suppliers, Most likely it doesn't happen but its always a possibility.

It seems like maybe the semiconductor shortage is finally passed. Back in 2020, in a BBC article a German car CEO said the shortage could last a few years.

Article:

Domestic production jumped 39.2 percent to 282,695 units, even as the company halted some production lines in Japan for 10 days during the month after an explosion at a factory belonging to Chuo Spring Co. in the city of Toyota, Aichi Prefecture.

Toyota said a production ramp-up on the back of the improvement in the chip crunch made up for the output loss, which was caused by a suspension spring shortage resulting from the explosion.

Helping the rise in global sales was a 5.2 percent growth in sales outside of Japan to 756,245 units, also a record high for the month.

Ideas:

Production companies, car companies, are always experiencing plant shutdowns related to parts shortages, supply challenges, and plant equipment problems. The trick is do companies plan for the stoppages and can they get back on schedule without too much downtime. 

Japan needs, and most likely being worked on, Japanese suppliers to provide semiconductors too, as though Japanese companies don't have to rely on Taiwan or South Korea for their supplies.

Unfortunately, Japan has fallen behind in the production of semiconductor chips but with an agreement with Taiwan they are building new semiconductor plants in Japan. 

Even at 5.2 percent growth in sales outside Japan, Toyota is probably seeing improve profits as the weak yen makes sales outside of Japan increase.

Article:

Sales of hybrid cars were notably strong in North America and Europe, with models such as the RAV4 and Corolla particularly popular, the automaker said.

Domestic sales rose 17.8 percent to 133,996 vehicles, according to Toyota.

Global production at Japan's eight major carmakers, including Toyota, rose 12.2 percent in October from a year earlier to 2,371,355 units, as all of them except for Daihatsu Motor Co. reported year-on-year growth due to the improved supplies of semiconductors.

Ideas:
Improved supplies important for Japanese car makers, as they probably use thousands of suppliers related to their car production. As a result, the eight carmakers are a huge part of the Japanese economy, and of course provide thousands of jobs and many small supplier companies which again provide jobs to thousands of workers.

It interesting that Japan has eight major carmakers, while the US might have four only. It seems that maybe the Japanese car makers and Japan in general, is more about cooperation than competition. The same can be said about the Japanese airline industry, with two major airlines and a lot of low-cost or regional airlines that are related to the two major Japanese airlines.

At the same time, companies like Daihatsu, a subsidiary of the Toyota group, focuses on different cars, which makes small compact cars compared to the main Toyota company.  

Article:

Honda Motor Co.'s output increased 22.8 percent to 405,276 units as growth in the United States made up for a production drop in China, where it has been hit by stiff price competition. Nissan Motor Co. built 310,480 cars, up 4.3 percent, as it ramped up production in Britain.

Daihatsu saw its output fall 1.5 percent, coming short of the results last year, when it launched new models.

Ideas:

Japanese cars are sold globally and made in different countries globally. China maybe is experiencing many domestic challenges in its economy now. But China is now producing more EV cars than Japan and now might be the global leader in EV car production.

Daihatsu has had some internal issues which has forced them to shut production down for a while, and even in its overseas plants in Indonesia and India. 

Daihatsu, again is a subsidiary of the overall Toyota group, and Toyota has come under fire for the latest challenges at Daihatsu. 

Have a nice day and be safe!