Analyst Note
| David Whiston, CFA, CPA, CFE |Toyota has been stockpiling chip modules since the 2011 tsunami in Japan, which has allowed it to escape the vast majority of the production problems that rivals such as General Motors and Ford have suffered from the semiconductor shortage. However, the duration of the shortage and COVID-19 shutdowns in Malaysian chip plants have finally proved too much for even Toyota. On Aug. 19, the firm announced large shutdowns throughout the world, especially for 14 Japanese plants, that globally will reduce September output by about 40% from planned production, or 360,000 vehicles, according to Automotive News.