Global carmakers such as Germany's Volkswagen and Japan's Toyota are suffering production disruptions due to shortages in automotive semiconductor supply. Toyota has decided to reduce production of its pickup truck "Tundra" at its plant in Texas due to a shortage of semiconductors, according to Japanese media outlets such as Kyodo News and Nihon Keizai Shimbun on Jan. 10. The specific scale and period of production cuts were not disclosed. Honda also notified its clients of its plan to cut production of more than 30,000 units, or 20 percent of its monthly production, in January 2021 in China alone after reducing production of the compact model Fit at factories in Japan. According to Nikkei, Honda’s production cut in its factories in China is estimated at 50,000 units in January. As China accounts for 30 percent of Honda's global sales, the production cut will hit the carmaker hard. Nissan also started to cut production of its compact car Note, which was launched in December 2020 as its flagship model for the Japanese market. The carmaker is expected to reduce production of the Note by more than 15,000 units in January 2021. Fiat Chrysler Automobiles (FCA) and Ford, both of which are based in North America, are also affected by a chip shortage, Kyodo News said. FCA will temporarily suspend operations of its plant in Ontario, Canada, which produces luxury sedans such as the Chrysler 300, and postpone resuming the operation of its Mexican plant. Ford has also decided to put a stop to its Kentucky plant for a week. Germany's Volkswagen announced in December 2020 that it will start adjusting production at its plants in China, North America, and Europe due to inadequate semiconductor supply.
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