Toyota to reduce global production from 900K to 500K in September

[Sprintey]

Here come those naughty semiconductors (or lack therof) again:

https://www.zerohedge.com/markets/to...-production-40

Markets have responded tonight by pantsing themselves on open. A drop of nearly 400,000 cars in a month is significant.

I have a solution for this mess.

Just scrap semiconductors, and make cars again with simple electrics, distributors & carburettors, and mechanical diesels. No supply shock from lack of semiconductors.

[au2000]

Well guessing supplies of hills will dry up again soon then?

[Franco Cozzo]

Originally Posted by Sprintey

Here come those naughty semiconductors (or lack therof) again:

https://www.zerohedge.com/markets/to...-production-40

Markets have responded tonight by pantsing themselves on open. A drop of nearly 400,000 cars in a month is significant.

I have a solution for this mess.

Just scrap semiconductors, and make cars again with simple electrics, distributors & carburettors, and mechanical diesels. No supply shock from lack of semiconductors.

This makes it harder for me to use them as the example and start pointing fingers

Put that mechanically injected 4.2L MWM 6.07tca diesel engine in everything that was in the povvo spec F250/F350, punch some holes in everyone's lungs.

Corolla? 4.2L MWM 6.07tca, save the limited semiconductors for the important stuff like the stereo.

[Wretched]

So Sean was full of crap as usual when he said they have no supply issues.

[Bossxr8]

But but but, only ford have semi-conductor supply issues

[Franco Cozzo]

Originally Posted by Bossxr8

But but but, only ford have semi-conductor supply issues

Apple doesn't

[Bossxr8]

Originally Posted by Franco Cozzo

Apple doesn't

Electronics companies took all the excess supply. So no, they don’t have any supply issues at all. Cause they have all the chips the auto makers were supposed to have.

[Fordman1]

Originally Posted by Bossxr8

But but but, only ford have semi-conductor supply issues

Yep poor management and planning from Ford, but Toyota are fine

[BENT_8]

Originally Posted by Fordman1

Yep poor management and planning from Ford, but Toyota are fine

Toyota never said they were immune, just that they had reserves to keep them going for the time being, obviously the supplies they had can only go so far, further than some others, lol.
That they've continued to build until now is due to changes to JIT, Ford cut back months ago.

Electronics companies simply expanded their orders which were accommodated due to auto manufacturers cancelling theirs

[Fordman1]

Originally Posted by BENT_8

Toyota never said they were immune, just that they had reserves to keep them going for the time being, obviously the supplies they had can only go so far, further than some others, lol.
That they've continued to build until now is due to changes to JIT, Ford cut back months ago.

Electronics companies simply expanded their orders which were accommodated due to auto manufacturers cancelling theirs

You’re wrong.

JIT means “Just in Time”, not “we have lots of parts for a few more months”.

The parts are either available or not, Ford production hasn’t reduced because they had a Non Toyota JIT system, the parts weren’t available to support the volumes ordered.

The parts are either available or not, and the issue is not because they had inventory systems that weren’t JIT (Ford DO have JIT systems, although I suspect you’ll just “poo poo” that as usual)

[BENT_8]

Originally Posted by Fordman1

You’re wrong.

JIT means “Just in Time”, not “we have lots of parts for a few more months”.

The parts are either available or not, Ford production hasn’t reduced because they had a Non Toyota JIT system, the parts weren’t available to support the volumes ordered.

The parts are either available or not, and the issue is not because they had inventory systems that weren’t JIT (Ford DO have JIT systems, although I suspect you’ll just “poo poo” that as usual)

No, you are wrong, Toyota began moving away from JIT, a system they introduced, after the Quake/Tsunami as they realised it left them exposed to supply disruptions.
It was reported months ago that Toyota were in a better position than others and for that reason, they keep more Inventory.
Obviously a disruption of this magnitude is beyond what could be foreseen so whilst they had enough to keep going until September, it has caught up with them too.

[Fordman1]

Originally Posted by Sprintey

Here come those naughty semiconductors (or lack therof) again:

https://www.zerohedge.com/markets/to...-production-40

Markets have responded tonight by pantsing themselves on open. A drop of nearly 400,000 cars in a month is significant.

I have a solution for this mess.

Just scrap semiconductors, and make cars again with simple electrics, distributors & carburettors, and mechanical diesels. No supply shock from lack of semiconductors.

Yeah get rid of AirBags, Cruise Control, EPAS Systems, Touch Screens, heating and cooling systems, tyre pressure monitoring systems, key fobs, and everything else.

Also make everything a 1 Star ANCAP / NCAP rated car ( for safety)

[CyberWasp]

and yes I am joking.

[Franco Cozzo]

I deal with OEM's at work, they demand demand demand demand demand demand demand, then at a moments notice they'll just cancel and leave you holding the bag without compensation, it doesn't surprise me if they cancelled orders on their supply chain without notice, then tried to ramp up demand massively again, where the stuff went to the electronics companies instead.

Here's a parliamentary submission from circa 15 years ago, an Australian company supplying Ford, Holden and Mitsubishi which no longer exists:

OEM’s demand delivery of “productivity” price reductions from suppliers across the life of the vehicle platform, and refuse to accept any cost adjustments for material price increases which have been significant in recent years with the rising price of oil and steel, nor for labour price increases.

Unlike many other business the OEM’s advise suppliers of schedules generally
on a weekly basis, projecting out demand for a period of 3 months. Suppliers
use these schedules to order components from sub suppliers.

On a daily basis the OEM’s advise the supplier of the following days requirements.

The supplier has to ensure it has capacity and materials to fulfil those 3 month schedule requirements. In an environment as we have in the current market, where OEM daily requirements for the current period are only a fraction of those forecast (and against which suppliers have acquired components), OEM’s refuse to assist suppliers in managing what can be a significant cash flow impact while inventories are absorbed over a greatly extended period of time.

In our experience OEM’s award business with no long term contract for the
supplier. Products can be resourced at relatively short notice as has been
evidenced by FCA in recent weeks. The absence of any binding long term
supply contract with the OEM’s provides a lever for ongoing price reductions
based on global benchmarking results.

During the quotation process the OEM’s provide indicative annual volume
estimates against which suppliers access the level and sophistication of
production equipment and amortisation requirements for this capital
investment to achieve these volumes. No fallback is provided where OEM actual requirements fall short of these estimates.

If they cancelled their orders on their supply chain then I have no sympathy for them that the electronics industry took all their cancelled orders.

https://www.google.com/url?sa=t&rct=...aQf63tLppQiQvq