Toyota’s profitability dropped by 21% in the last three months of 2021 as the result of the global chip shortage. The corporation reported a third-quarter operating profit of 784.4 billion yen (£5 billion; $6.8 billion).
The world’s best-selling automaker also lowered its yearly manufacturing target from 8.5 million to 500,000 vehicles. It comes at a time when manufacturers all around the world are having difficulty finding adequate microprocessors for their goods.
“We apologise for any difficulty given to our customers as a result of the sequence of manufacturing volume cutbacks that have occurred since last summer. We’re working hard to get full production back up and running as soon as feasible “In a statement, Toyota stated.
Because of the chip scarcity, Toyota cut its global vehicle output by 40% in September.
As the epidemic disrupts supply lines, the corporation has also declared a series of production halts in recent months due to a scarcity of parts.
Volkswagen, General Motors, Ford, Nissan, Daimler, BMW, and Renault, among others, have reduced vehicle manufacturing in recent months.
“The chip scarcity will still affect Toyota in 2022,” Tu Le, managing director of Sino Auto Insights, told, “but they’ll likely manage any issues better than their contemporaries.”
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