Toyota's problem: small rubber parts, microprocessors
ERJ staff report (DS)
Tokyo -- Toyota's executive vice president in charge of production is reported to have told investors that the company is seeing shortages of two main categories: small rubber parts and microchips.
Toyota Executive Vice President Atsushi Niimi, speaking on a global conference call with financial analysts, said "Especially critical was microcomputers and rubber-related parts, and those were sourced from a single supplier." He added, some of those 150 critical parts mentioned used content or subparts that have been concentrated in Tier 3 through Tier 4. And those are the levels in which a sole source is sometimes relied upon." Niimi was speaking through a Japanese translator.
Niimi continued, "However, those suppliers are renowned for very high engineering capabilities and therefore we do not think that it will be easy for us to switch to other sources."
Niimi repeated statements from Toyota that its factories in Japan are operating at half of their normal output because of supply chain problems, while plants outside Japan are running at 40 percent of normal.
This report compiled from a story by Lindsay Chappell of Automotive News, A sister publication to ERJ.
From Automotive News (A Crain publication)
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