Toyota will cut its global production plan by about 100,000 in June due to the semiconductor shortage.

The company did not change its estimate of producing about 9.7 million vehicles worldwide by March 2023.

The automaker also announced additional domestic factory line suspension due to supply shortage triggered by COVID-19 lockdown in Shanghai.

The additional suspension will be up to five days between Wednesday and June 3, affecting 16 lines at 10 factories for May and June in total.

It is planning to produce about 850,000 vehicles globally a month on average from June through August, it said, adding chips shortage and COVID-19 outbreaks and other factors "Are making it difficult to look ahead."

Semiconductor shortage to last two more years says VW:

An executive at one of the world's biggest car makers has revealed a grim outlook for new car supply over the next 24 months.

The ongoing semiconductor shortage will likely last at least two more years, according to the chief financial officer of German car giant Volkswagen.

A lack of computer chips – used in almost all electronic devices from screens to locking system – has plagued the automotive industry since late 2020, crimping production and driving up prices.

Access to the parts has affected almost every major manufacturer.

Multiple factors have been blamed for the shortages, including factory retooling during COVID and increased demand in other sectors including computer and phone production.

While it was originally deemed to be a relatively short-term inconvenience, car makers are now preparing customers for the possibility extended wait times could remain for some time.

"The structural undersupply will likely only resolve itself in 2024,” Arno Antlitz, chief financial officer of Volkswagen said.

Less than a day later BMW CEO Oliver Zipse told newspaper Neue Zuercher Zeitung: "I expect us to start seeing improvements at the latest next year, but we will still have to deal with a fundamental shortage in 2023."

Supply of new cars in Australia has dropped significantly over the past two years, while prices and wait times have steadily ballooned over the same period.

Some manufacturers – including Ford and Peugeot – have taken to removing electronic features to preserve parts and maintain production lines.

Source | Reuters