That's why Toyota has so far been largely unscathed by a global shortage of semiconductors following a surge in demand for electrical goods under novel coronavirus lockdowns that has forced many rival automakers to suspend production, the sources said, according to The Japan Times. Toyota was, as far as we can tell, the only automaker properly equipped to deal with chip shortages, said a person familiar with Harman International, which specializes in car audio systems, displays and driver assistance technology. After the catastrophe severed Toyota's supply chains on March 11, 2011, the world's biggest automaker realized the lead-time for semiconductors was far too long to cope with devastating shocks such as natural disasters. ; The automaker came up with a business continuity plan BCP that required suppliers to stockpile anywhere from two to six months' worth of chips, depending on the time it takes from order to delivery, four sources said. Two of the sources who spoke to Reuters are Toyota engineers and the others are at companies involved in the chip business. Toyota, meanwhile, has raised its vehicle output for the fiscal year ending this month and jacked up its full-year earnings forecast by 54%. Classic lean solution The source familiar with Harman said the technology company, part of South Korea's Samsung Electronics, was experiencing shortages of central processing units CPUs and power management integrated circuits as early as November last year. Toyota surprised rivals and investors last month when it said its output would not be disrupted significantly by chip shortages, even as Volkswagen, General Motors, Ford, Honda and Stellantis, among others, have been forced to slow or suspend some production. (news.financializer.com).
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