Toyota will cut production at four North American plants this week, citing “a shortage of petrochemicals” and “recent severe weather conditions.” The move comes just 24 hours after Honda announced the temporary closure of all of its factories in the U.S. and Canada.
Toyota did not say how long the cuts would last, but specified that they “will impact the production of the Camry, Camry Hybrid, Avalon, Avalon Hybrid, RAV4, Lexus ES 350, Lexus ES 300h, and Tacoma.”
A global shortage of microchips is forcing many automakers to curtail production. The consulting firm AlixPartners estimates a production drop of as many as 5 million vehicles worldwide in 2021 due to the shortfall.
Toyota’s mention of a petrochemical shortage may refer to a shortage of seat foam, which comes from byproducts of the oil refining process. With many oil refineries shut due to damage from a severe cold snap in Texas last month, suppliers have warned that they may be unable to find the chemicals needed to make new seats.
Volvo also announced the temporary closure of several production lines in the U.S. and China due to the semiconductor shortage.
Car prices have not yet risen in response to the supply problems. We will continue to follow the story and report if they do.
