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Discussion Starter · #1 · (Edited)
Toyota Busts The Car Microchip Shortage

Nov 23, 2021 - Steven Symes

But how did Toyota do it?

Unless you’ve been living in a cave or under a rock, you know for about a year automakers have been suffering from a shortage of microprocessor chips which are necessary for a number of features. This has meant auto giants shuttering factories for weeks on end, trimming back on production, and even storing unfinished cars in hopes they can install the chips at a later date. With predictions of this situation being alleviated in a matter or months or even a couple of years, it might be shocking to hear Toyota has already found a solution.

That’s right, the only big automaker to have skipped out on most of the chip shortage nonsense in North America but ultimately had to scale production back by 40 percent, to the glee of its critics, is once again alone in its cherry situation. Toyota has announced it will be back to full global production capacity in December. In fact, the company says it anticipates churning out 800,000 vehicles next month, up from the 760,000 it made in December of 2020.

This update should have Ford, GM, Stellantis, Volkswagen, Nissan, and others absolutely seething. After all, it’s been proven consumers in North America and other markets have quite the appetite for new cars. If Toyota dealerships are the only ones with any vehicle stock to speak of, it doesn’t take a genius to realize the automaker will clean up. That might even mean some shoppers switch their brand loyalty to Toyota for years to come, meaning this change might cause some long-term market shifts.

Speaking of Ford and GM, the two American automakers are reportedly looking into making their own computer chips as a way to get out of this horrible situation and never return to it. Ford told the media it's in a strategic agreement with GlobalFoundries Inc., which is based in the US. We don't know any details about that deal.

GM President Mark Reuss disclosed his company is trying to form some deep connections with chip makers, although it's not clear which ones he's trying to romance. He did say the move is supposed to cut down on the variation in chips used in GM vehicles, so this could have a very positive long term effect.

Toyota could yet again be the largest automaker in the world, a title it’s claimed many times in the past. It’s forecasting making a total of 9 million cars for the year, which during this time of constrained production is impressive.

Nobody inside Toyota is revealing how the automaker has been able to secure enough chips to return to full production levels. However, the company has said it will do so without removing features from its vehicles, a corner many automakers have been cutting so they can make their dwindling chip supply stretch further. In fact, GM recently revealed it will be axing items like heated seats, ventilated seats, blind zone monitoring, Super Cruise, etc. on several models

Just because Toyota has some unrevealed access to computer chips doesn’t mean it doesn’t have other hurdles to overcome. Per reports, the automaker is dealing with shortages of different parts, but has been working with suppliers to alleviate the situation. That can-do attitude is refreshing at a time when everyone seems apt to blame any shortcoming on the pandemic.

Even when Toyota was forced to cut back production dramatically it still kept scoring big wins. During the company’s fiscal second quarter, which ran from July through September, it posted a 48 percent increase in operating profits. Now, the automaker is forecasting close to a record level of full-year profits. Since the fiscal year for Toyota ends March 31, 2022 there’s still time to make up lost ground.

Meanwhile, the chip shortage has led to a tremendous car shortage for dealerships. You can probably drive around your local dealerships and see large swaths of the lots empty, as have we. It’s the same thing north of the border in Ontario, Canada. A report out of Windsor, which is right over the river from Detroit, has detailed out how many dealers are selling cars before they even arrive, so they’re keeping next to nothing onsite. That report went over GM, Volkswagen, Nissan, Kia, and other dealerships. This is why Toyota’s move to full production will attract shoppers who don’t want to wait weeks or months for a vehicle to be made and delivered. One dealer even admitted demand is so high if they had vehicles in stock they would be selling twice as many. It’s a good time to own a Toyota dealership, or it will be soon enough.

Sources: Automotive News, Drive, The London Free Press, Edmunds, The Daily Wire
 

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Did Toyota write this article? The bias is so loud I had to lower my speakers.
Yahoo contributor wrote it, that says everything ;). And Toyota FWIW may well be blowing out a big smoke screen just to bolster up investors and its customer base with high hopes. Only time will tell I guess.
 

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Discussion Starter · #5 ·
Did Toyota write this article? The bias is so loud I had to lower my speakers.
The guy maybe a Toyota Fanboi, is anything he stated wrong? Appears he gathered information from multiple sources:
Sources: Automotive News, Drive, The London Free Press, Edmunds, The Daily Wire



Yahoo contributor wrote it, that says everything ;). And Toyota FWIW may well be blowing out a big smoke screen just to bolster up investors and its customer base with high hopes. Only time will tell I guess.
I had the wrong link; fixed - I originally found the story on yeah-who: https://www.motorious.com/articles/features-3/toyota-busts-microchip-shortage/


Judging by my local GM dealers lack of inventory, so much so they could hold drift competitions and flea markets in their parking lot and my local Toyota dealers packed lot Toyota may be onto something
It's almost like GM has been so focused on Elon/Tesla and EV, they forgot where their bread is buttered?

So, what color Tundra should I get?
 

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Discussion Starter · #7 ·
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Did Toyota write this article? The bias is so loud I had to lower my speakers.
Toyota is under some criticism for being so behind everyone on EV development so may be trying to garner better press with this chip stuff. Besides, Yahoo is anything but objective.
 

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Discussion Starter · #11 ·
Toyota is under some criticism for being so behind everyone on EV development so may be trying to garner better press with this chip stuff. Besides, Yahoo is anything but objective.
Yet Toyota will have a Compact CUV EV before GM; something we've all but begged for (Voltec) for almost a decade now.... GM's promised an onslaught of EV's between now and 2025, meanwhile 1/3 of Toyota's today are some sort of Hybrid/EV. This book is going to be long, with many more chapters, and nobody appears to be taking the same path; I can't begin to guess how it is going to play-out.
 

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Toyota is under some criticism for being so behind everyone on EV development so may be trying to garner better press with this chip stuff. Besides, Yahoo is anything but objective.
Being behind is an opinion. I'm not hooked on snorting that magical EV dust that so many seem to crave. As I've said numerous times, I'd buy a hybrid but I doubt I'd buy a lektrik. Maybe that will change when I go drive a couple of examples of them.
 
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The guy maybe a Toyota Fanboi, is anything he stated wrong? Appears he gathered information from multiple sources:
Sources: Automotive News, Drive, The London Free Press, Edmunds, The Daily Wire

I had the wrong link; fixed - I originally found the story on yeah-who: https://www.motorious.com/articles/features-3/toyota-busts-microchip-shortage/

It's almost like GM has been so focused on Elon/Tesla and EV, they forgot where their bread is buttered?

So, what color Tundra should I get?
I think that you are getting over your ski tips. I will begin with this observation: The chip shortage has been one of the worst reported non-political issues that I have ever seen. Part of the reason is that it is at the intersection of two industries that have crossed paths only in the last four decades or so. The automobile industry press knows nothing about microelectronics. The microelectronics industry press knows nothing about cars. However, this shortage is affecting a number of industries, not just the automobile industry.

That said, most reports refer to "chips" being essential and in short supply. However, virtually any integrated circuit may be properly referred to as a chip. Integrated circuits vary widely in sophistication and application. The Steven Symes piece is the first report that I have seen or heard that referred to the missing chips as microprocessors. Just because Symes says it does not make it so. Microprocessors are not interchangeable--even from the same source--unless they are specifically designed to be interchangeable.

I went through each of the reports that you linked to in the post quoted above. They generate more heat than light on this situation. For example, one report claims that Toyota avoided the chip shortage by hoarding chips. If true, then it means that Toyota no longer employs JIT procurement. This is just one of the many contradictions that have appeared in the press about how the chip shortage is being handled.

Without supporting evidence, I would never assert that Steven Symes took payments from Toyota or that Toyota paid him or anyone else to write favorable reports. For the web-based press, clicks are the coin of the realm. The Symes piece generated heat. It also generated clicks.
 

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I think that you are getting over your ski tips. I will begin with this observation: The chip shortage has been one of the worst reported non-political issues that I have ever seen. Part of the reason is that it is at the intersection of two industries that have crossed paths only in the last four decades or so. The automobile industry press knows nothing about microelectronics. The microelectronics industry press knows nothing about cars. However, this shortage is affecting a number of industries, not just the automobile industry.

That said, most reports refer to "chips" being essential and in short supply. However, virtually any integrated circuit may be properly referred to as a chip. Integrated circuits vary widely in sophistication and application. The Steven Symes piece is the first report that I have seen or heard that referred to the missing chips as microprocessors. Just because Symes says it does not make it so. Microprocessors are not interchangeable--even from the same source--unless they are specifically designed to be interchangeable.

I went through each of the reports that you linked to in the post quoted above. They generate more heat than light on this situation. For example, one report claims that Toyota avoided the chip shortage by hoarding chips. If true, then it means that Toyota no longer employs JIT procurement. This is just one of the many contradictions that have appeared in the press about how the chip shortage is being handled.

Without supporting evidence, I would never assert that Steven Symes took payments from Toyota or that Toyota paid him or anyone else to write favorable reports. For the web-based press, clicks are the coin of the realm. The Symes piece generated heat. It also generated clicks.
Good points made in this here post.
 

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I think that you are getting over your ski tips. I will begin with this observation: The chip shortage has been one of the worst reported non-political issues that I have ever seen. Part of the reason is that it is at the intersection of two industries that have crossed paths only in the last four decades or so. The automobile industry press knows nothing about microelectronics. The microelectronics industry press knows nothing about cars. However, this shortage is affecting a number of industries, not just the automobile industry...
Thank you for the thoughtful, articulate commentary, MisterMe.

I don't mean to be hyperbolic, but it's refreshing to read a critical post devoid of simply casting aspersions on someone or something simply because the author does not state what someone may want to hear, but focuses on where there may be truths, where there may be misinterpretation, where there may simply be a lack of expertise, all of which should be dispassionately considered. Yours is a skill and practice in short supply these days, sadly.
 

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Discussion Starter · #16 ·
I think that you are getting over your ski tips. I will begin with this observation: The chip shortage has been one of the worst reported non-political issues that I have ever seen. Part of the reason is that it is at the intersection of two industries that have crossed paths only in the last four decades or so. The automobile industry press knows nothing about microelectronics. The microelectronics industry press knows nothing about cars. However, this shortage is affecting a number of industries, not just the automobile industry.

That said, most reports refer to "chips" being essential and in short supply. However, virtually any integrated circuit may be properly referred to as a chip. Integrated circuits vary widely in sophistication and application. The Steven Symes piece is the first report that I have seen or heard that referred to the missing chips as microprocessors. Just because Symes says it does not make it so. Microprocessors are not interchangeable--even from the same source--unless they are specifically designed to be interchangeable.

I went through each of the reports that you linked to in the post quoted above. They generate more heat than light on this situation. For example, one report claims that Toyota avoided the chip shortage by hoarding chips. If true, then it means that Toyota no longer employs JIT procurement. This is just one of the many contradictions that have appeared in the press about how the chip shortage is being handled.

Without supporting evidence, I would never assert that Steven Symes took payments from Toyota or that Toyota paid him or anyone else to write favorable reports. For the web-based press, clicks are the coin of the realm. The Symes piece generated heat. It also generated clicks.
I maybe getting over the tips of my skis, but you are off the course; clearly into the weeds............

We know that GM said within the last couple weeks, "Heads-up" we won't be equipping most of our vehicles with heated/cooled seats or steering wheels for most of the remainder of the 2022 model year, at a time when cash is loose, demand is hot and premium trims are the norm. Meanwhile nobody else is painting an image close to that dire, and some are even bragging about how many fully-optioned cars they are going to make; "facts".

I'm sure Toyota was one of the ones that was burnt the most by the Fukushima disaster, what the saying?.....
"Fool me once, shame on you; fool me twice, shame on me"
 

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I maybe getting over the tips of my skis, but you are off the course; clearly into the weeds............

We know that GM said within the last couple weeks, "Heads-up" we won't be equipping most of our vehicles with heated/cooled seats or steering wheels for most of the remainder of the 2022 model year, at a time when cash is loose, demand is hot and premium trims are the norm. Meanwhile nobody else is painting an image close to that dire, and some are even bragging about how many fully-optioned cars they are going to make; "facts".

I'm sure Toyota was one of the ones that was burnt the most by the Fukushima disaster, what the saying?.....
"Fool me once, shame on you; fool me twice, shame on me"
But yet Toyota seems to be doing a much better job of inventory and control through much of this ongoing saga.
 

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Discussion Starter · #19 ·
M local Toyota lots are empty. I guess they are building a lot of vaporware with them
I know you hate Toyota, I'm sorry.

Understandably, it is hard to gauge looking at both with empty lots, but..............

Q3 2021 - GM sold 446,997 and Toyota sold 566,005 units.

#Vaporware or #Vaporwhere ?
 

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I think that you are getting over your ski tips. I will begin with this observation: The chip shortage has been one of the worst reported non-political issues that I have ever seen. Part of the reason is that it is at the intersection of two industries that have crossed paths only in the last four decades or so. The automobile industry press knows nothing about microelectronics. The microelectronics industry press knows nothing about cars. However, this shortage is affecting a number of industries, not just the automobile industry.

That said, most reports refer to "chips" being essential and in short supply. However, virtually any integrated circuit may be properly referred to as a chip. Integrated circuits vary widely in sophistication and application. The Steven Symes piece is the first report that I have seen or heard that referred to the missing chips as microprocessors. Just because Symes says it does not make it so. Microprocessors are not interchangeable--even from the same source--unless they are specifically designed to be interchangeable.

I went through each of the reports that you linked to in the post quoted above. They generate more heat than light on this situation. For example, one report claims that Toyota avoided the chip shortage by hoarding chips. If true, then it means that Toyota no longer employs JIT procurement. This is just one of the many contradictions that have appeared in the press about how the chip shortage is being handled.

Without supporting evidence, I would never assert that Steven Symes took payments from Toyota or that Toyota paid him or anyone else to write favorable reports. For the web-based press, clicks are the coin of the realm. The Symes piece generated heat. It also generated clicks.
That's exactly what it means, apparently after the Fukushima disaster they changed their procurement practices to give them a buffer in case of future supply line disruptions.
 
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