Tag Archives: toyota news

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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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Japanese automaker Toyota donated $55,000 to 37 GOP lawmakers who tried to decertify the results of the 2020 president election.

Axios Toyota chart
Toyota donated $55K to 37 Republican politicians who voted against certifying the 2020 election results.

Not only did the Japanese automaker support those politicians, but it was their top supporter — by a lot, according to investigative news website Axios, which pulled the data from a study by the Citizens for Responsibility and Ethics in Washington.

The company’s $55,000 was nearly than double amount of the next closest company, defense company Cubic Corp., which approached nearly $30K in donations. Toyota spread that money out to four times more Republican politicians than the next closest company. Toyota officials defended their donations.

“We do not believe it is appropriate to judge members of Congress solely based on their votes on the electoral certification,” Toyota officials said in a statement emailed to Axios.

“Based on our thorough review, we decided against giving to some members who, through their statements and actions, undermine the legitimacy of our elections and institutions.”

Influencing U.S. elections is a hot-button issue

For decades, what groups are funding politicians has been a contentious issue, but divisiveness surrounding the funding and influence has escalated in the last two presidential elections — Americans want to know who or what organizations are supporting their politicians and candidates.

In the wake of the attack on the U.S. Capitol Jan. 6 where protestors attempted to overturn the election while several Republicans inside the building attempted to forestall the inevitable, the divide has skyrocketed.

In all, 147 GOP members of the U.S. House of Representatives voted against certifying the November 2020 election results that saw former Vice President and Democratic challenger Joe Biden defeat Republican then-President Donald Trump. 

Biden captured the popular vote with 81.3 million votes to Trump’s 74.2 million votes. The Electoral College vote was 306 to 232 in favor of Biden with 270 needed to win the presidency.

Since then, Trump and many others have contended the election was stolen. However, neither the Trump campaign nor individual supporters have been able to produce evidence of this, including two cases that went to the Supreme Court — both were shot down.

Where did Toyota’s money go?

The automaker spent big on politicians, including Andy Biggs, an Arizona Republican in the U.S. House. Biggs has been an ardent purveyor of what many call “The Big Lie,” the idea that Trump actually won the election.

Axios reported an organizer of the “Stop the Steal” rally that immediately preceded the storming of the Capitol Building Jan. 6, Biggs helped organize the event. Biggs denies the allegation.

The negative response on social media was swift and predictable with thousands expressing their disappointment and vowing to no longer buy a Toyota. Many tweets used plays on words to talk about the newest Camry S-Edition or some other version of it and typing “#toyota” into the search function automatically pulls up #ToyotaHatesDemocracy.

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Toyota agreed to pay a $180 million fine after failing to report EPA-mandated emissions information.

Toyota Motor agreed to pay the largest civil penalty ever – $180 million – to settle a lawsuit brought by the Department of Justice because the automaker failed to report violations of U.S. emissions regulations for a decade.

The Japanese automaker avoided reporting violations of the Clean Air Act to the Environmental Protection Agency between 2005 and 2015. The company didn’t report defects that hindered its vehicles’ ability to control tailpipe emissions “designed to protect the public health and the environment from harmful air pollutants,” the DOJ said.

The lawsuit was filed and settled simultaneously in U.S. District Court in Manhattan because Toyota agreed to all the provisions in the consent decree. The company’s late or, in some cases, non-existent filings allowed for millions of potentially non-compliant vehicles to be sold in the U.S.

(New Toyota patent lets dirty car drive itself to the car wash.)

For a decade, the automaker systematically failed to report defects and top Toyota executives in Japan knew about the practice but failed to stop it, the DOJ contends.

Toyota either delayed or simply failed to send emissions information to the EPA from 2005 – 2015.

“Toyota shut its eyes to the noncompliance,” Audrey Strauss, the acting U.S. attorney, said in a statement, “failing to provide proper training, attention, and oversight to its Clean Air Act reporting obligations.”

“Toyota’s actions undermined EPA’s self-disclosure system and likely led to delayed or avoided emission-related recalls, resulting in financial benefit to Toyota and excess emissions of air pollutants. Today, Toyota pays the price for its misconduct with a $180 million civil penalty and agreement to injunctive relief to ensure that its violations will not be repeated.”

(Toyota boss Akio Toyoda remains EV skeptic.)

While Toyota officials agreed to pay the fine, they appear unwilling to go as far as being the environmental bad guy the Justice Department suggests. Eric Booth, a spokesman for the automaker, told the New York Times the company alerted the authorities as soon as the lapses came to light, and that the delay in reporting “resulted in a negligible emissions impact, if any.”

Toyota contends that while it erred in not sending the information, the impact was negligible.

“Nonetheless, we recognize that some of our reporting protocols fell short of our own high standards, and we are pleased to have resolved this matter,” Booth added.

This isn’t Toyota’s first brush with this issue. In 2003, the automaker was penalized $20 million for selling 2.2 million vehicles with noncompliant on-board diagnostic systems. That was two years before the current round of transgressions began.

(Launching 25 models over 16 months, remain active in passenger car segments.)

In addition to the financial penalty, the company is working under an injunction that ensures it complies with emissions-reporting requirements going forward.


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