Toyota suspends Czech operations as auto-chip shortage worsens

Toyota Motor Corp. is suspending operations at a plant in the Czech Republic for two weeks due to chip shortages.
By : Bloomberg
| Updated on: 20 Mar 2021, 10:27 AM
File photo of Toyota logo
File photo of Toyota logo
File photo of Toyota logo
File photo of Toyota logo

Toyota Motor Corp. is suspending operations at a plant in the Czech Republic for two weeks due to chip shortages, the latest production halt at the Japanese automaker related to supply-chain disruptions.

The Kolin factory will be on hiatus from Monday, March 22, due to low supplies of semiconductors caused by production delays after the cold weather in the U.S., spokeswoman Shiori Hashimoto said Saturday. The facility assembles the compact car Aygo for the European market.

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(Also Read: SAIC, Toyota invested $500 million in autonomous driving startup Momenta)

The weather-induced shortage is a new factor for the auto industry, which had already been dealing with low chip supplies stemming from increased demand by consumers working and spending more time at home during the pandemic. Cold weather in North America is also disrupting petrochemical and raw-material supplies used for automobile manufacturing.

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First Published Date: 20 Mar 2021, 10:26 AM IST
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