GAC Toyota pressed the pause button due to chip supply
According to insiders, Guangfeng's output in January this year may be reduced by up to 30% due to chips. The specific output will be determined according to the duration of the shutdown.
Just in early January, the shortage of semiconductor chips has put more large automakers into capacity dilemmas. Daimler, Nissan, Honda, Ford, and Fiat Chrysler have stated in succession last week that the chip problem has spread to the production end, causing the production of some models to have to press the pause button.
According to the latest news on January 12, Toyota Motor has suspended some production lines of GAC Toyota starting on the 11th due to insufficient supply of semiconductor chips, and plans to restart production on the evening of the 12th. It is reported that Toyota has stopped the third production line of GAC Toyota. The production of cars and SUVs at this base has been temporarily compressed by the supply of chips.
It is reported that Toyota has recently informed some dealers that Guangfeng’s production plan has been suspended for 4 days, but due to the increased procurement of semiconductor chips, production was resumed early on the evening of the 12th. According to insiders, Guangfeng's output in January this year may be reduced by up to 30% due to chips. The specific output will be determined according to the duration of the shutdown.
GAC Toyota’s third production line is mainly responsible for the production of Camry and C-HR models. Although production has been operating normally, the company still intends to continue to expand the purchase of semiconductor chips in preparation for stable supply. According to industry insiders, FAW Toyota, located in the north, is also revising China's production plan.
In 2020, Toyota sold 1.79 million new vehicles in China, an increase of 10.9% over 2019. This achievement has set a new historical record for 8 consecutive years and exceeded the sales target of 1.76 million vehicles set at the beginning of 2020.
Prior to this, Toyota's production capacity affected by chips was mainly concentrated in North America. The company's North American spokesperson Scott Vazin revealed last week that they will reduce the production of the full-size pickup truck Tundra at the San Antonio, Texas plant, but it is not clear at this stage how much will ultimately be reduced.