Toyota Will Lift Production as Rivals Lag

By Douglas A. McIntyre Published Jun 22, 11:30AM EDT

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Toyota Will Lift Production as Rivals Lag — © Courtesy of Toyota

Toyota has announced it will increase production for July through September to 850,000. It said it would do so despite an ongoing microchip shortage. It hedged its comments a bit: “As it remains difficult to look ahead due to the shortage of semiconductors and the spread of COVID-19, there is a possibility that the production plan may be lower.”

The disclosure must come as a shock to the industry. Almost every other car company has said it cannot ramp up production. Supply chain shortages are too brutal.

How can Toyota swim against the tide? It would not say. It has been considered a master of sourcing parts for decades. However, it did not point to that skill. Demand for cars has been high across most of the world. But that means there are buyers, not that there is inventory.
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If there is a competitive advantage in the car industry today, it is not product or even price. It is the ability to get cars onto lots. Toyota seems to be alone when it comes to the edge.
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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.