Toyota, major chip supplier to cut production due to Japan earthquake

A car dealership’s window is broken following a strong earthquake in Koriyama, Fukushima prefecture, Japan in this photo taken by Kyodo on March 17, 2022.

Kyodo| via Reuters

DETROIT – A major earthquake this week in Japan is causing additional problems for the already constrained global automotive supply chain, which continues to manage through problems caused by the coronavirus pandemic and Russia’s ongoing invasion of Ukraine.

As companies monitor and assess potential residual impacts of Wednesday’s 7.4 magnitude earthquake on their supply chains, auto companies most immediately impacted included Toyota Motor and Renesas Electronics, a major supplier of semiconductor chips for the automotive industry.

Research firm LMC Automotive expects the earthquake to lead to lower vehicle production this year of between 25,000 and 35,000 cars and trucks, adding to already-decreased expectations due to an ongoing shortage of semiconductor chips and the war in Ukraine.

“This is just another layer

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Putin-favorite Russian car brand Lada idles production

Russia’s top automotive brand, Lada, has idled production due to supply chain issues.


Lada is part of Renault-owned AvtoVAZ. (Alyona SeleznevaTASS via Getty Images)

The marque was launched during the Soviet era by AvtoVAZ, which was originally a state-owned company, but has been part of France’s Groupe Renault since 2017.

Renault’s holdings in Russia account for approximately 40% of the country’s car production, and Lada accounted for the two best-selling models of 2021.

Lada Granta

The Lada Granta was the second-best-selling vehicle in Russia ni 2021 behind the Lada Vesta. (Vladimir GerdoTASS via Getty Images)

An AutoVAZ spokesman told The Wall Street Journal that the suspension was due to the global chip shortage and refused to comment on whether economic sanctions were a contributing factor.


Renault had previously paused production at other

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UK car production plummets to 13-year low in January

UK car production plummets to 13-year low in January

UK car production fell 20.1% to 68,790 units in January 2022. Photo: Phil Noble/Reuters

UK car production sank to its lowest January in a decade as semiconductor shortages continued to cause disruption, new figures from the Society of Motor Manufacturers and Traders (SMMT) showed.

Fewer than 68,800 cars left factories in January, down by 20% on a year ago and the worst figure for that month since 2009, the SMMT said.

Production for overseas and domestic markets fell by 17.5% and 30.8% respectively.

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Exports accounted for more than eight in 10 cars made, with the EU remaining the largest destination for UK-made cars, taking 59.1% of exports, followed by China (10.4%) and the US (10%).

The SMMT said the global shortage of semiconductors was still hitting production, as was the changeover to electric of some popular models.


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