Toyota Cuts Fiscal-Year Production Target
Continuing chip shortage bedevils world’s biggest carmaker, which falls short of a new record.

Semiconductors are still in limited supply, narrowing carmakers' outputs.
IMAGE: Getty Images/Ismed Syahrul
The semiconductor shortage continued to cause headaches in the automotive industry as Toyota said it won’t meet its fiscal-year output target due to the lingering chip scarcity.
The concession came months of sticking with its initial goal of 9.7 million vehicles in the year ending March 31. It said it will produce 800,000 vehicles in November and pause work at its plants in Japan. That’s about 100,000 short of its former target.
The original output goal was still significantly above its record of 9.08 million vehicles. Continued industrywide supply issues ultimately made it elusive.
J.P. Morgan Research forecasted in August that the general chip supply would increase in the second half of the year and that the shortage is nearing its end, but that Volkwagen estimated supply would likely continue to be inadequate to meet automotive industry demand until 2024.
The U.S. government is investing billions of dollars into domestic production of semiconductors, in part to wean its markets off of Asian suppliers, particular in China.
Meanwhile, Forbes reported that a black market in chips is thriving due to the shortage, some of them substandard in quality.
More Dealer Ops

Dealer Debrief: August Auto Sales
Gas-powered engines still dominate the U.S. vehicle market, but hybrids are gaining ground as consumers look for ways to cut their gas costs.
Read More →
Dealership Profits Decline
While new and used retail sales stagnated, dealerships have been particularly supported by fixed operations and finance-and-insurance profits, according to a new report.
Read More →
Dealer Debrief: Defection Data & EV Updates
In this week's debrief, host Lauren Lawrence discusses how to use defection data to your advantage and the latest on EV sales and charging infrastructure.
Read More →
How Defection Data is Bridging the Dealership Conversion Gap
Lead volume is flat, cross-shopping is up and brand loyalty is in retreat. As confident sales teams keep losing buyers they thought they had, daily industry sales data is showing dealers exactly where their funnel is breaking and how to fix it without buying a single new lead.
Read More →
Dealer Debrief: Where are you losing customers?
In this week's debrief, host Lauren Lawrence discusses the hidden leaks in dealerships where you might be losing customers without even realizing it.
Read More →
Dealer Debrief: Improving Your Inventory Management
In this week's debrief, host Lauren Lawrence covers a new survey that shows what service technicians really want and two launches that could help improve your inventory and vehicle life cycle management.
Read More →
Ladies and Gentlemen, This Is a Dealership: Why the Fundamentals Still Decide Who Wins
A teaching moment by a legendary football coach happens to apply perfectly in the auto retail space. Learn what it is and how to use it to your store’s advantage.
Read More →
Dealer Ads and the FTC
The agency has made it clear in recent enforcement actions and warnings, in auto retail and other industries, that advertised prices must include all nonoptional costs to the consumer.
Read More →
Used Autos Supply Dwindles
The March shopping surge, despite high prices, cut into inventory by the most since the thick of the pandemic, Cox Automotive analysts calculated.
Read More →
Managing Risk Effectively Through Changing Times
The variables influencing risk pricing have changed significantly over the past five years. Being proactive and responsive to emerging trends is not optional but essential.
Read More →
