How bad is chip crisis? Well, Toyota to now halt production at five factories

For anyone who may have thought that the new year would bring about some miraculous solution to the semiconductor shortage plaguing the automotive industry needs to think again. The unprecedented and possibly crippling crisis is most likely to retain its dubious nature minus a solution for at least several months of 2022 with Toyota Motor Corp announcing it will have to halt production at five of its plants in January.

Toyota has set itself a goal of manufacturing nine million vehicles next year - down from previously stated 9.3 million - and while it says that the halt in production at its five facilities won't impact this overall goal, production of 20,000 vehicles is likely to take a hit in the short term.

The decision to halt production at five of its plants comes just days after Toyota had said it is eyeing a record January production of 800,000 cars, 60,000 more than the number of units rolled out in January of 2021. (Full report here)

Toyota is the world's largest automobile manufacturer but like most other major brands, the chip shortage has meant the going has been significantly tough. In North America for instance, the Japanese company expects production in January to come down to 50,000 units.

It remains to be seen if the persisting chip shortage crisis also potentially affects Toyota's massive plans of going electric. The company recently announced its plans of having as many as 16 battery-powered vehicles in its global lineup to take on the likes of Tesla, Volkswagen and others. The bZ4X is gearing up for a US launch next year and will be followed by a number of other models, including an all-electric midsize sedan and a large electric SUV. But the more immediate challenge of getting supplies and production schedules in place is likely to take the bulk of energies.

(With input from Reuters)