Due to a shortage of semiconductors, Toyota Motor Corp. reduced its October production target by 6.3% to approximately 750,000 vehicles yet again.
The announcement came immediately after Toyota released its production target of approximately 800,000 vehicles globally for the next month. This revelation has heightened concerns pertaining to the chip shortage crisis and its impact on production.
Toyota added, however, that its production target of 9.7 million vehicles for the current fiscal year has not changed. It made that claim despite the announcement of a production halt for up to 10 days at certain Japanese production lines.
Toyota’s global vehicle production increased by 44.3% year-over-year in August as the sector recovered from the COVID-19 pandemic. According to Reuters, however, the outlook remains uncertain due to the global chip shortage and ongoing COVID-19 outbreaks.
No Love For Electric Cars
Toyota CEO Akio Toyoda, yesterday, emphasized his lack of enthusiasm for electric vehicles (EVs) by simply saying, “I love cars.”
Toyoda believes that EVs are not the ultimate solution to achieving carbon neutrality. Under his leadership, the company is focusing on the development of hybrid and fuel cell technology.
Over the next nine years, Toyota plans to invest $70 billion in new energy vehicle (NEV) development. Half of that will go toward battery electric vehicles (BEVs) while the remainder will be spent on fuel cell vehicles (FCVs) and hybrid electric vehicles (HEVs).
During his conference with the media in Los Vegas, Toyoda stated:
For me, playing to win also means doing things differently. Doing things that others may question, but that we believe will put us in the winner’s circle the longest.