Toyota partially halts North American auto production on plastics shortage

HOUSTON (ICIS)–Toyota is the latest automaker to see North American production disrupted because of supply-chain issues related to the recent winter storm and lingering effects from the coronavirus (Covid-19) pandemic.

The company said the supply shortage will affect production at its US plants in the states of Kentucky, West Virginia and Mississippi, and its plant in Mexico.

“Our manufacturing and supply chain teams are working diligently to resume normal operations as quickly as possible by evaluating the supply constraint and developing countermeasures to minimise further impact to production,” a company spokesperson said.

Honda said on Wednesday it will halt most auto production in the US and Canada during the week of 22 March because of supply chain issues.

A global shortage of semiconductors has contributed to production cuts at other automakers.

US automaker General Motors Co announced on 3 March that production cuts at three North American plants will be extended amid the continued global shortage of semiconductors.

US Ford Motor Co said in February that the global semiconductor shortage is creating uncertainty and will lead to production losses of about 10-20% in Q1.

The auto industry is also facing a shortage of chemicals used to make foam for auto seats after the winter storm that hit the southern US in mid-February and knocked many US Gulf chemical plants offline.

The automotive industry is a major global consumer of petrochemicals which contributes more than a third of the raw material costs of an average vehicle, and production disruptions could severely weigh on demand.

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