Feb 9, 2022

Global chip shortage: Toyota profits fall as production hit

Japanese motor industry giant Toyota saw its profits fall by 21% for the last three months of 2021 as the global chip shortage hit production. "We sincerely apologise for the inconvenience caused to our customers due to the series of production volume reductions since last summer. We are working to restore full production as soon as possible," Toyota said in a statement. In September, Toyota slashed its worldwide vehicle production by 40% because of the chip shortage. "The chip shortage will still weigh on Toyota in 2022 but they'll likely manage any challenges better than their peers," Tu Le, managing director of Sino Auto Insights told the BBC."I think they actually see opportunity in crisis because of their confidence in managing the shortages better than GM and VW. So relatively, I see Toyota having a strong year relative to their competitors," he added. Separately, in January Toyota warned customers in Japan that they would have to wait for up to four years to take delivery of its new Land Cruiser SUV.The firm said the delay was not related to the global chip shortage or the supply chain crisis.

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