Ok that’s not 4% that is FORTY … 4-0 … percent.
Ok so let me get this straight… the worlds largest automotive production firm is imminently going to reduce production by 40% (again that is not 4% that is 4-0 percent) and the inflationistas think the Fed should (to them) “reduce accommodation!” because things are going too well? The party is getting so out of bounds the Fed will have to “take away the punch bowl!” ? Are they insane?
Toyota could care less what interest rates are they don’t even have any inventory to finance… not good… reducing production to lowest since 2nd quarter 2020 which saw a -32.9% GDP…
NAGOYA, Japan -- Toyota Motor said Thursday it will reduce global production for September by 40% from its previous plan, as the spread of the coronavirus in Southeast Asia adds to supply troubles for Japan's top automaker.
The maker of the Prius hybrid and the RAV4 SUV planned to build nearly 900,000 automobiles for the month, but that number has been reduced to about 500,000. Nikkei reported on the production cuts earlier.
Unlike other automakers, Toyota had been relatively unscathed by the global chip shortage. But other components are starting to run short as Southeast Asian nations, home to key links in the company's supply chain, struggle to contain the coronavirus, forcing Toyota to halt assembly lines at home and abroad.
At roughly 500,000 units, Toyota's global production in September will be the lowest since May 2020, when the coronavirus was hitting U.S. and European factories.
#Toyota announced that it will reduce its global production by 40% in September due to Covid-related factory disruptions and renewed chip shortage. https://t.co/eqOEnDAkNM #Automotive
— Bruno A. Bonechi (@BBonechi) August 21, 2021
That's what happens when you make cars that last more than 5 years -- eventually it will hurt your sales :(
ReplyDeleteJust the other day I was sayin' to the wife how much I hate Toyota. She reminded me that we have a Toyota, my parents have a Toyota, mu aunts and so. True. So why do I have them so much? Aesthetics -- that's why! You got 20-something Toyotas, freakin' ugly compared to the newer models, on the streets driving and sounding like they have another 20 years to go! OK, but their so damn ugly!
Give me a new, sleek Range Rover with a engine lifespan of 5 years (if you're lucky) any time. It's all aesthetics, baby! ;)
"hate," not "have." :)
Delete"they're," not "their." :(
DeleteGet a Nisan Leaf you barbarian.
ReplyDeleteNissan, not Nisan :)
ReplyDeleteLook, this is a bigger problem in South-East Asia and China, as COVID"S resurgence there is massively disrupting world trade. See
ReplyDeleteCOVID-19 is causing yet another shipping bottleneck in China, driving container rates through the roof
in International Shipping News 20/08/2021
https://www.hellenicshippingnews.com/covid-19-is-causing-yet-another-shipping-bottleneck-in-china-driving-container-rates-through-the-roof/
A taste:
"we can expect inflation to rise as importers pass on the costs of shipping to customers. Given that governments and central bankers were already worried about rising inflation for various other reasons, they could do without this extra dimension.
If the problem with shipping rates looks like enduring, it is also likely to feed into boardroom discussions about whether it is wise to rely so heavily on China as the manufacturing hub of the world. With relations between China and the West already at a low, and much talk of globalization giving way to regionalization, many are already arguing that they should make more consumer goods closer to home – “nearshoring”, as it is known in the trade.
But more imminently, one big issue will be putting the fear of God into retailers: Christmas."