The global chip shortage is an ongoing crisis we certainly didn't expect before the pandemic hit. Who would've guessed that the demand for integrated circuits or semiconductor chips would become greater than the supply? Yet, from 2020, more than 169 industries were affected due to this shortage, failing to produce cars, graphics cards, video game consoles, computers, and many other products that require chips.

The COVID-19 pandemic, weather, and political friction are some of the reasons for the global chip shortage that may have cost the automobile industry $210 million in revenue in 2021. Following the recent events (e.g. other material shortages due to an ongoing crisis), we can expect things to get worse before they become better. Although we hoped for the global chip shortage to end with the new year, there are reasons to believe it will last for at least several months in 2022. The following article applies as of January 2022.

How are automobile brands over the world dealing with the crisis? Today, we want to see where Toyota stands and what we can expect from the Japanese manufacturer in 2022. Will the production decrease? Has Toyota found a way to cope with the chip shortage? Read on to find out.

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Toyota Cut Down The Production During The Few Months In 2021

Three Toyota Vehicles Parked.
Via: Toyota

The chipagedon affected a lot of brands across the industry. At the very beginning, some stood better than others, but little could have been planned ahead. Although it seemed Toyota had a grip on the situation throughout 2021, things began to look shaky as the end of the year drew closer.

In August 2021, the news was out. Toyota planned to cut its production by 40%. It could not be said the Japanese manufacturer zoomed past the crisis anymore. Instead of making the planned 900,000 vehicles in September, Toyota reduced the numbers to 540,000. In November, the same thing happened.

As we mentioned, Toyota was not alone in this situation. The prominent German brand Volkswagen made these cuts even earlier, somewhere at the start of the year. However, the word is that Toyota made it without significant production decreases longer because it had piles of chips already stacked in its factories.

Seemingly, the manufacturer was prepared and almost made it throughout 2021. Following the recent decreases in production, however, Toyota fans are right to wonder how things will look like in 2022. Are we to see another sale decrease in 2022? Will things become worse before they get better?

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Big Plans For 2022: Toyota To Halt Production To 9 Million Cars

One Of Toyota's SUVs On Display.
Via: Toyota

Considering the White House arranged a meeting about the chip shortage crisis, the decline in car production came as no surprise. Although we hoped some would avoid the problem, Toyota's review of monthly incomes was pretty much expected. What we have not anticipated, however, is that the Japanese manufacturer will soon announce the good news.

After several months of decrease, Toyota reported higher profits at the end of the year. The brand's teams offered an optimistic look into 2022, suggesting the crisis could ease a little bit over the upcoming months. Would the new year be risk-free? We don't think so, and Toyota's professionals probably retain a hint of caution despite the positive attitude.

If we sum things up and listen to the expert predictions about prevailing problems with material shortages all over the world, it's easy to conclude the situation probably won't go away overnight. However, as time passes, we can presume the automobile manufacturers are doing everything they can to get out of the crisis. Some of them must have a plan so far, and it seems Toyota is among them.

How The Reputable Japanese Brand Looks To Bypass The Chip Shortage?

The 2022 Toyota Venza.
Toyota

So, the question is, how does Toyota plan to deal with the chip shortage (should it continues in 2022)? We'll have to wait and see. At this point, we can only guess what the upcoming year will look like for the automobile industry. The rumor has it that some car manufacturers seem to be planning the chip production in their own factories. Although that hasn't been confirmed yet, it would be a clever move to avoid any similar situation in the future.

Having chips within the car factories would reduce the dependence of brands on external sources, but we do guess this comes with a set of new challenges. Some brands must have been thinking the same, as they announced making more tied connections with chip producers. Is Toyota up for the former or the latter strategy? We honestly don't know.

The Japanese manufacturer is still keeping its production strategy a secret. However, it must have one because the nine million announced units for 2022 will need a lot of chips. We'll keep you updated on how this story develops.