Toyota hit by chip shortages and rising costs

The world number one is in turn shaken by the disruptions of theautomobile industry. Until there, Toyota had been more spared by the shortage of semiconductors than its major Western competitors.

The Japanese manufacturer saw its net profit fall by 17.9% over one year in the first quarter, to 736.8 billion yen (5.4 billion euros). And its operating profit collapsed by 42%, to 578.6 billion yen, despite sales up 7%, to 8491.1 billion yen. Toyota cut monthly production targets three times in the quarter due to global chip shortages and factory restrictions in China because of Covid-19. “We have not been able to produce enough, with customers all over the world waiting for delivery of their vehicles,” Toyota spokesman said.

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The magnitude of the decline in operating profits surprised analysts and investors. “It’s extremely bad”