The world¡¯s largest carmaker doesn¡¯t have a chip-shortage problem.
In contrast to the rest of the auto industry, Japan¡¯s Toyota Motor Corp. said on Feb. 10 it wasn¡¯t expecting a shortfall of semiconductors to affect its production. In the company¡¯s earnings call, Chief Financial Officer Kenta Kon said that as part of its business continuity plans, Toyota ¡ª which makes more than 10 million cars a year ¡ª had secured ¡°one to four months of stocks as necessary¡± for various components. As its operating profits surged, it raised its earnings forecast by over 50%. (Meanwhile, the company said the Feb. 13 earthquake off the coast of Japan did not have any impact on its plants.)
Meanwhile, the rest of the industry is gripped by a chip deficit. Globally, automobile production could fall by up to 3 million cars, or 3% to 5% of the total, this year. It is the result of a miscalculation of demand and deep, systemic issues in the supply chain; and the scarcity isn¡¯t abating anytime soon.
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