Sumary of Toyota ditches signature ‘just-in-time’ to fight chip crunch:
- TOKYO — Global automakers are increasingly shifting away from traditional practices where they only keep a limited stock of key components, with the COVID-19 pandemic and international tensions stoking shortages of technology such as chips.
- Companies are also moving to sign long-term contracts with semiconductor manufacturers lasting for several years or to try to order one product from more than one company.
- By 2030, when many more electric vehicles are on the road, the British research company expects the car industry to be spending 30% more on chips.
- Seiji Sugiura, a senior analyst at Tokai Tokyo Research Insititute, said Toyota grew less efficient as it began stockpiling “chips and materials whose prices are going up.