Will Toyota's Production Pause Go Global?

Following last week’s announcement where Toyota explained its need to scale back Japanese production by 20 percent this April, the automaker has outlined planned slowdowns for the foreseeable future. It’s citing all the usual problems. Countries are still employing various COVID-19 restrictions that are upending supply chains, semiconductor production for automobiles remains insufficient, and there’s a war in Eastern Europe that’s creating all-new troubles while exacerbating some of the more familiar ones. But scaling back output might not be the death sentence it sounds like.

With last year resulting in 10 million deliveries worldwide, Toyota actually managed to improve its sales against 2020’s year-over-year global production decline of 12 percent. And the last two years have also yielded enhanced profitability for the automaker, despite it having expressed repeated concerns about procuring enough components to keep popular models (like the RAV4) in stock. In 2021, Toyota saw $249.4 billion in revenue and even became the best-selling automaker in the United States, dethroning former top-dawg General Motors.

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Mustang Production Paused at Flat Rock Assembly

Ford will be idling Mustang production this week due to an insufficient supply of semiconductor chips. For all the talk the industry made about getting over supply chain hurdles in 2021, manufacturers continue citing insufficient access to microchips as the primary obstacle preventing them from enjoying more routine operations.

The automaker confirmed the move on Tuesday, explaining that Michigan’s Flat Rock Assembly will be down until sometime next week.

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Semiconductor Shortage Delays More Automobiles

The industry is having to stall more plants to contend with the semiconductor shortage that’s currently making it more difficult for you to get everything from a smartphone on up to your next vehicle. Ford Motor Co. recently informed employees that its Dearborn truck plant (easily one of its most profitable facilities) would need to be idled through the weekend to create a buffer for semiconductor chips. Worse yet, it’s not the first time the automaker has had to stall output of the F-150 this year. Ford has also started manufacturing trucks without all the necessary components, stating it would hold vehicles for a few weeks to account for supply chain delays.

Meanwhile, Chrysler has made a similar announcement about its minivan output as Windsor Assembly faces another chip deficit. Unifor Local 444 recently stated that the facility would be staring down the barrel of a four-week shutdown starting next week. Considering Chrysler’s minivans literally just dealt with a three-week stall over the chip shortage, union workers are understandably upset. Days earlier, General Motors Canada also announced that its CAMI plant in Ingersoll, Ontario, will likely remain idle until the middle of April.

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Jaguar Land Rover to Idle Factories in Britain Next Month

Jaguar Land Rover has decided to stall production at two of its British factories for several weeks. Starting in late February, JLR intends to stop work at both its Castle Bromwich Assembly and Solihull plants until the end of March. The factories won’t be totally inactive for the duration; the manufacturer claims there will be half days intermixed with full-day closures.

Unlike the bulk of plant idlings taking place across the globe (though mostly in China), this has nothing to do with the coronavirus. While the outbreak has begun disrupting supply chains as the PRC attempts to keep the illness in check by barring people inside their homes, JLR said it’s stalling UK production to address falling demand and Brexit complications — the latter of which is beginning to feel like a lame excuse.

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  • Olddavid I do not know how to evaluate an automobile any longer. It seems all the selling points valued by the customer base are non-starters in my book. Two tons plus for this vehicle? $50,000 for a Dodge branded Alfa Romeo that cannot sell its heritage to American buyers anyway? Is there any compelling argument for a walk-in to be turned to a buyer by excitement alone? This does not have the ingredients to end well, and that grieves me as I have been a Chrysler fan since they had pushbuttons and slant sixes. Being an elderly me has been difficult lately as I have been a NIssan fan, too, since I first saw that odd Bluebird and we have seen their fortunes edging to free fall territory. What's next? My gramophone breaking?
  • SCE to AUX "maximize commonality on the assembly line"That's code for 'fewer options', which means the manual transmission is done for good. Less tooling, less training, fewer ECU code variants = lower cost and higher quality.I'm sure Ford's new quality guy agrees... or perhaps he thought of it.
  • Carrera Hmm..a Stelantis vehicle made in Italy. What can go wrong? I am sure it will be super reliable, particularly the first 3-4 years of production.
  • Kwik_Shift Manuals are great theft deterrents though. 😉Sad when they're disappearing from many makes.
  • Arthur Dailey Confession here. 2 of the previous generation Rogues in our family over the past 5 years. Saw some cost cutting between the 1st and the 2nd one. On the 'new' one there are no cubbies on the back of the front seats, the ignition is not lit, and there is a marked difference in the front seats. The first Rogue has the most comfortable seats I have experienced since the heyday of the PLCs. Despite sciatica could drive that Rogue for hours with no issues. The seats on the 2nd Rogue create discomfort after 30 minutes. And everyone in the family has noticed this.The first Rogue drove seamlessly. Quiet and comfortable on the highway. On both we have averaged just over 29 mpg. The 2nd Rogue needs to be warmed up and driven slowly if left out overnight in minus 30 (f) or -0 (c) weather, otherwise the engine just revs and the speed does not seem to increase. The dealer has been asked to look at this multiple times but each time they claim that there is no issue. It also has the worst Bluetooth interface I have experienced. Otherwise, based on size, cost, the Rogues were chosen over Toyota/Honda. Both were/are leased so not concerned about long term values/reliability. And the 'new' Rogue came standard with heated seats and blind spot warning, which the Toyota/Honda did not without going up a couple of packages.However we should have bought out the first Rogue when the lease ended. During the height of the pandemic, it could have easily been flipped for close to double the buyout cost.