Source: Toyota
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  • The ongoing COVID-19 pandemic is hindering car manufacturers ability to produce new vehicles, due to chip shortages
  • Toyota and Volkswagen say the semiconductor chip shortage is ongoing as the automotive industry competes with other industries to access the chips
  • Factories across the Asia Pacific have been facing rolling lockdowns, curbing their ability to produce the much-needed chips
  • Toyota says it willl slash September’s production by 40 per cent, while Volkswagen is flagging potential production number reductions
  • Ford is also affected, announcing it will halt production of its popular F-150 pickup truck in the US

The COVID-19 pandemic is hindering car manufacturers’ ability to produce new vehicles, due to ongoing chip shortages.

Two of the world’s largest car manufacturers, Toyota and Volkswagen, said there was not enough semiconductor chips available to sustain their production needs.

Toyota has confirmed it would have to slash September’s production figures by 40 per cent, affecting Japanese and US productions hubs. Meanwhile Volkswagen flagged potential output reductions from its plants this week, stating the chip industry was “volatile”.

“We currently expect supply of chips in the third quarter to be very volatile and tight,” Volkswagen’s spokesperson told Reuters.

“We can’t rule out further changes to production.”

The automotive industry has begun competing with other industries to access the chips, which are used in everything from emergency braking to fuel management.

At the same time, rolling lockdowns within the factories producing the chips have been blamed for the shortages, with several Asia Pacific nations reporting spikes in COVID-19 cases.

Global supply chain disruptions have also impacted car manufacturers’ ability to deliver new vehicles.

Ford said it would also halt production this quarter, announcing it couldn’t produce any more of its popular F-150 pickup truck in the US due to chip shortages and supply chain issues.

Stellantis, the owner of car brands such as Fiat, Peugot, Chrysler, Dodge and more, joined the group of manufacturers halting productions.

The company said it would halt production at its plant in France and cut output at other factories in the nation.

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