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Toyota, VW and Ford Feeling Sting of Chip Shortage with Lost Production, Profits

Ford’s been hardest hit by the semiconductor shortage, but recent events show that no company can escape the impact.

Toyota GAC Guangzhou plant — Toyota shutdown its plant in Guangzhou, China last month due to a COVID outbreak.

Toyota announced temporarily shut downs of 27 out of 28 production lines at 14 plants around the world due to the problem. Volkswagen officials said they’re mulling ways to avoid a similar problem, saying production levels would fall, but no plant closures were announced. Unsurprisingly, Ford is closing plants this weekend due to the problem.

The Japanese automaker’s announcement came as a bit of a surprise because of its scale: 40% of all its global capacity will be down for parts of September. The company will lose about 360,000 vehicles due to the maneuver. It covers a variety of the maker’s portfolio: RAV4, Corolla, Camry, Prius and even the company’s luxury unit’s Lexus RX.

Not surprisingly, the world’s second-most valuable automaker saw its stock take a hit today, falling 4.7% on the news. Some of that drop comes because the company’s forecast for annual operating profit of $22.7 billion didn’t change, but it’s already lower than analysts are predicting.

Toyota Takaoka plant assembly station — Toyota’s Takaoka plant was partially shut down due the impact of an earthquake earlier this year.

Avoiding the problem

Toyota managed to steer clear of the issue because it had presciently stockpiled semiconductor chips, according to multiple media reports. The strategy came about as a response to the massive 2011 earthquake that hit Japan, forcing its shutdown for weeks.

Additionally, the Fukishima nuclear plant disaster cemented the need, in the eyes of Toyota’s top leaders, to ensure it had a healthy backstop of chips.

Toyota US Plant — Several product lines will be affected by the automaker’s closures, including the Toyota Camry.

As a result, the automaker confirmed its goal of building 9.3 million vehicles globally for the fiscal year ending March 2022. It also still plans to sell 8.7 million of those vehicles. The total would make it the second biggest automaker behind Volkswagen.

Chips not the only issue

Semiconductors are problematic, but production of vehicles — as well as additional chips — is being hampered as the latest wave of COVID-19 hitting the company’s facilities and its suppliers in Southeast Asia very hard.

The issue caused Toyota to previously stop assembly lines at some Japanese factories between late July and early August, including its Tahara plant, due to a surge in infections in Vietnam which had constrained the supply of parts, according to Nikkei, the Japanese news service.

The company’s also been forced to deal with similar issues at a plant in Guangzhou, China, and three others in Thailand.

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A Week With: 2021 Toyota Tacoma TRD Off-Road 4×4

Pickups are more popular than ever, especially with the new players in the midsize segment. However, one of the mainstays only seems to be getting better with age — The Toyota Tacoma. With an updated exterior and enough technology to keep new buyers happy, it’s the reason so many are playing catch up.

2021 Toyota Tacoma TRD Offroad front — The 2021 Toyota Tacoma TRD Off-Road is clearly capable of that, and much more.

Toyota’s Tacoma has been the best-selling midsize truck for nearly two consecutive decades — 16 years. Now for some of that time, the competition was pretty sparse, but nowadays, it’s a tough gig to remain at the top of the mountain.

Overview

The latest version of the pickup is really all things to all people. Available in 33 different configurations, it’s unlikely you’ll find a customer whose needs it won’t fit. Not only is it rough and tumble, as we saw in our week with the TRD Off-Road model but it’s loaded with all of the latest safety technology and some concierge features that truck buyers now demand.

It’s a renaissance truck in a time where these vehicles do the daily commute, trek to soccer tournaments, make sure the yard looks great and is ready to head off scale big rocks and rutted roads. That’s a tall order.

2021 Toyota Tacoma TRD Offroad side — The Tacoma TRD Off-Road certainly looks the part, which is good because it plays it.

Exterior

Few pickups wear the phrase “It’s a truck. Whaddya want?” better than the 2021 Tacoma. It looks the part because it plays the part. The wide, blacked out grille with the name “TOYOTA” emblazed square in the middle and the squinty-eyed headlights on either side are complemented by the black plastic chin on the front fascia that makes it look like you could punch it in the mouth and it’d look at you and say, “That’s it?”

It’s a truck.

The crease in the doors about a third of the way up from the frame lend some visual interest, taking you down the side of the cab to the flared wheel wells and the simple, understated liftgate with TACOMA seemingly carved into it

It’s a truck Whaddya want? That’s a good thing, by the way.

Interior

If the Tacoma has a weak spot, it might be the interior. It’s straightforward. It’s not covered in chrome accents or exotic woods, this is a simple, almost throwback-style cabin. There are knobs, buttons and switches. Some would say it’s a throwback, but there are still a few examples of this kind of interior design on U.S. roads today.

The gauges are clear and easily read. If you want to engage the four-wheel drive, you turn the knob. If you want to open the rear window, reach over and press the button. Again. Simple. Easy. Common sense. I feel like a character from a commercial about something traditional just writing this. I liked it. Get off my lawn! Others who want some more … pizzazz may not like it as much as I did.

Powertrain

Ok. Back to more good stuff. The Tacoma TRD Off-Road is powered by a 3.5-liter V-6 putting out 278 horsepower and 285 pound-feet of torque. It’s mated to a 6-speed automatic transmission that gets the job done. Its responsive and feels powerful and makes a good noise for a midsize truck, which isn’t always the case in pickups.

The transmission is solid and smooth. I didn’t have the opportunity to tow anything or go off-road, but it did take a lengthy trip in it and it performed very well. It’s predictable and strong, which is what you want in a pickup.

Toyota Offers First Official Look at Next-Generation Tundra Pickup

2022 Toyota Tundra leaked pic — Part of a series of photos, this leaked picture of the 2022 Tundra TRD Pro in red forced Toyota to show off the new truck earlier than desired.

Toyota has been quietly providing a sneak peek at the next-generation Toyota Tundra to a handful of dealers and members of the media in recent weeks. Now that one of those retailers leaked out an image of the truck, Toyota has decided to release the first formal image of the 2022 Tundra.

There’s good reason for a dealer to get excited. The current Tundra has been around for an unusually long period of time, coming to market all the way back in 2007 and getting what was a relatively modest update for 2014. Its key domestic competitors, the Ford F-150, Chevrolet Silverado and Ram 1500, have gone through several complete makeovers during the same period. Even the Nissan Titan had a long-awaited remake in 2016.

“Some people don’t know how to keep a secret,” Toyota said in a tweet with the first official picture of the new 2022 Tundra.

Images leak out

The truck pictured in Toyota’s pic was nearly identical to the one in the leaked image, but for color. And, based on a number of details, appears to be a TRD model aimed at off-roaders. One of the most intriguing features is the light bar built into the truck’s new and significantly enlarged grille. The leaked images also show a TRD Pro tailgate. The official image also features 18-inch wheels shod with Falken off-road rubber.

There are plenty of questions to be asked about the next-generation truck. For one, will it be offered with more trim levels and body styles than the outgoing Tundra — and, in particular, in heavy-duty form? Detroit brands like Ford, Chevy and Ram offer seemingly endless variants that allow buyers to precisely match their needs and desires, something analysts believe have allowed the domestics to retain dominance.

Powertrain options make up another matter of speculation. The current Tundra offers a base 5.7-liter V-8 making an acceptable, if not overwhelming 381 horsepower. It’s widely expected that Toyota will lift a page from the Detroit playbook with an expanded series of engine options starting with a twin-turbo 3.5-liter V-6.

Toyota Tundra iForce Max — This shot certain implies what kind of transmission to expect.

New powertrain options to include a hybrid

But there are growing expectations that a hybrid will be offered, as well. That should come as no surprise considering Toyota was a pioneer in that technology — and the fact that it has repeatedly laid out a goal of “electrifying” essentially every product in its portfolio. Meanwhile, it has watched Ford get a leg up by launching a hybrid version of the latest-generation F-150.

If a hybrid is in Tundra’s plans, will it match Ford’s strategy with the PowerBoost and offer a built-in generator that can provide power at work and camp sites?

While Toyota still isn’t offering any official details about the next-generation Tundra, the official release of this pic will clearly resonate with current owners and potential buyers. Until now, they’ve had little to go on but for spy shots, rumors and a short company video that revealed an unspecified engine cover with the words “iForce Max” stamped in. That appears to be the name Toyota will use for its hybrid powertrain.

Pricing is one of the other details we’ll likely have to wait to have revealed. The current Tundra model starts around $36,000.

Toyota Corolla Cross Reimagines the Popular Sedan as a Crossover

(This story has been updated with additional information about sales expectations and potential powertrain options.)

In an SUV-crazed market, how do you retain demand for one of your most popular sedans? Tweak its design, add some new features and transform it into a “crossover,” or so Toyota is betting with the new Corolla Cross, a product, it says, “you didn’t know you needed until now.”

2022 Toyota Corolla Cross Celestite side — Toyota’s looking to attract more buyers to its Corolla line-up with the new Corolla Cross.

The Corolla Cross joins the Toyota line-up for 2022 and takes aim at a variety of small crossovers like the Honda HR-V and Chevrolet Trailblazer.

“Our loyal customers love the quality, durability and reliability that has helped make Corolla the best-selling nameplate in history,” said Lisa Materazzo, group vice president of Toyota Marketing. “With the all-new Corolla Cross we are building upon that foundation and offering more versatility and fun to adapt to their evolving lifestyles.”

Much like it’s efforts to change the perception about the Corolla being a first-time car for buyers, officials see the Corolla Cross as more upscale.

“The Corolla Cross is anything but entry level,” Sam Goot, Marketing general manager, told TheDetroitBureau.com. He said the automaker believes they’ll account for about a third of all Corolla sales, totaling more than 100,000 units starting next year.

Goot noted the vehicle is a “fierce competitor” for South Korean automakers, adding later that potential buyers wanting a non-currently-available hybrid model should keep their “eyes and ears open” for an announcement next year.

2022 Toyota Corolla Cross Celestite rear — The new Corolla Cross gives the driver the high seating position so many vehicle buyers want today.

Sharing underpinnings

The new crossover is based on the same TNG-A architecture as the current Corolla sedan – and a growing list of other Toyota models. But buyers might not notice the two models are related before checking out the badge on the new CUV.

As you’d expect, the Corolla Cross sits higher, with a taller roof that gently tapers towards its tailgate. The front end features a bolder, more upright, black grille and large bumper designed to give the new model a more rugged appearance. There’s more curve to the door panels and fenders that flare out over the wheel wells.

Under the hood, the new Corolla Cross will be outfitted with Toyota’s familiar 2.0-liter turbocharged Dynamic Force inline-4. It makes 169 horsepower which is channeled through a continuously variable transmission. The new CUV is available with a choice of either front- or all-wheel drive. The AWD package can send up to 50% of its torque to the back wheels, depending on road conditions and driver input. And the Corolla Cross gives a motorists the ability to haul up to a 1,500-pound trailer.

2022 Toyota Corolla Cross Celestite interior — The Corolla Cross offers buyers a spacious cabin with plenty of new technology.

Fuel economy, meanwhile, comes in near the top of its segment, with an EPA estimated 32 mpg combined for the FWD package, 30 with AWD.

Plenty of options

The new Corolla Cross delivers the higher seating position that draws many customers to crossovers, especially women. Overall, though, the new model’s “spacious interior shares many similarities with its sedan and hatchback siblings,” Toyota said in a statement.

And, as with the Corolla sedan, there’s a long list of optional features, including a 10-way adjustable driver’s seat, a moonroof, dual-zone climate control and a nine-speaker JBL audio system.

All versions come with a touchscreen infotainment system with standard Apple CarPlay and Android Auto, but buyers can upgrade to a larger, 8-inch screen and add satellite radio.

2022 Toyota Corolla Cross Celestite seats — Toyota officials believe the Corolla Cross will account for a third of all sales in Corolla line-up.

A power tailgate is another option, as are 17- and 18-inch wheels.

Safety first

Safety technology includes the basic Toyota Safety Sense package on all models, with additional driver assistance systems available, depending upon trim. “Blind Spot Monitor and Rear Cross-Traffic Alert come standard on LE and XLE, while Front and Rear Parking Assist with Automatic Braking is standard on XLE.And, nine airbags are mounted throughout the cabin to help protect occupants,” notes Toyota.

Toyota isn’t the only one to attempt to turn a sedan into an SUV. It didn’t do much for Buick when it launched the short-lived Regal TourX a few years ago. But Ford is hoping to do better with a new utility model borrowing the once-popular Fusion badge.

In today’s market, it’s logical for Toyota to expand its crossover line-up. And considering both sales trends and the long-running popularity of the original sedan, the expanded use of the familiar Corolla name might seem a safe way to instantly build the new CUV’s market awareness.