Steel Markets
Toyota Cuts March Production on Chip Shortage
Written by David Schollaert
March 18, 2022
Toyota North America has scaled back its production by an estimated 35,000 vehicles in March, with more reductions in April still possible due to the prolonged global microchip scarcity, a company spokesperson told Steel Market Update (SMU).
“Toyota’s North American plants continue to face intermittent production delays due to many supply chain disruptions,” she said. “We estimate a reduction of 35,000 vehicles in March.”
The North American subsidiary of Japanese-based Toyota Motor Corp. said that although they continue to diligently work to minimize the impact of the semiconductor shortage, the state of the supply chain remains fluid, likely impacting April’s production outlook in North America.
Toyota’s spokeswoman would not specify which plants or models would be impacted, noting that those dynamics are ever-changing due to the fluid nature of the microchip and parts allocation.
The lack of chip readiness continues to disrupt North American automakers nearly two years after the scarcity first resulted in widespread production outages.
Among other automakers most recently affected are Ford, Honda and Subaru.
Ford’s Avon Lake, Ohio, assembly plant was most recently idled during the week of March 14 due to the semiconductor shortage. The plant produces Ford’s E-Series cutaway and strip chassis, and the F-650, F-750 and Ford Super Duty trucks.
Honda’s North American operations also adjusted production during the week of March 14. Though the company would not provide details to SMU on specific facilities or models, the automaker’s spokesperson said the shifts were based on parts supply availability.
Subaru noted that “parts availability is an ongoing issue that can result in production fluctuations throughout any given week.” Other issues, including supplier staffing, have also caused disruptions for Subaru, a company spokesperson said.
General Motors Co. said it has no news to report for at least another week. Neither did Stellantis, Nissan or Daimler – all reporting steady production.
By David Schollaert, David@SteelMarketUpdate.com
David Schollaert
Read more from David SchollaertLatest in Steel Markets
GrafTech’s Q2 loss widens in ‘challenging’ business environment
GrafTech cited a “challenging” part of the business cycle as its net loss widened in the second quarter.
CRU: Poor steel margins continue to push down raw material prices
Both iron ore and coking coal prices fell this week because of resistance from buyers. Iron ore prices have continued to fall throughout the past week, following sharp declines in steel prices in China, given no new policy announcement from the ‘Third Plenum’ meeting.
Op-Ed: The myth of the Mexican steel surge
We have heard ominous warnings about a flood of Mexican steel threatening the US market. It's the kind of rhetoric that gets thrown around often with little regard for the facts. The reality is that the Mexican steel surge is simply not happening, and the US steel industry has consistently maintained a significant trade surplus in finished products with Mexico. In 2023 alone, this surplus exceeded $3 billion.
CRU: Demand weakness continues to weigh on global sheet markets
Demand has remained persistently weak across the globe for sheet steel, weighing on prices. US HR coil prices fell the furthest this week as high-volume, low-priced deals were transacted as mills looked to fill order books and competed with one another amid relative demand weakness. Meanwhile, European prices were also down due to low demand […]
Influx of coated products fuels recent import surge
Steel imports fell back in May from April’s recent high but remained elevated compared to the levels seen over the past year. A deeper dive into the data confirms what SMU has been hearing from sources: Coated sheet is driving the recent rise in overall import levels.