A semiconductor scarcity that has hit the auto sector hard has hurt the production of Japan's largest automaker Toyota, resulting in a nearly 18% decline in earnings from the same period last year, according to a report by the AP.
The quarterly profit for Toyota Motor Corp. was 736.8 billion yen ($5.5 billion), significantly decreasing from 897.8 billion yen ($6.69 billion) in the same quarter of last year.
Chip Scarcity
AP reported that customers who had placed orders for Toyota vehicles and were waiting for them received an apology from company representatives. Some people have waited so long that a new car model has since been released.
According to the manufacturer situated in Toyota City, central Japan, a number of issues in addition to the chip scarcity have hampered manufacturing, including flooding in South Africa and the COVID-19 lockdowns in Shanghai, China.
The number of automobiles sold by Toyota during the quarter was also down from the 2.1 million sold during the same time last year.
However, it maintained its 9.7 million vehicle production target for the entire fiscal year, claiming that production will increase in the coming months.
The business anticipates selling 10.7 million vehicles globally during the fiscal year ending in March 2023, an increase from approximately 10.4 million during the previous fiscal year.
Read also : EV Tax Credit to Return for Tesla, GM, Toyota? New Senate Bill On the Works, With a Catch
Toyota-Backed Pony.ai Files Lawsuit
Meanwhile, Pony.ai, a Chinese autonomous vehicle company that is backed by Toyota has recently filed a lawsuit against two ex-employees for allegedly violating trade secret laws, according to a report by TechCrunch.
Pony filed the case with a Beijing court and is suing Qingtian for 60 million yuan ($8.9 million) to stop infringing on its trade secrets . According to Pony, the case has already been accepted by the Beijing Intellectual Property Court.
However, Qingtian said that it has not yet received any documents containing allegations and is still confirming the details of the matter.
"Qingtian Truck has always adhered to the law, practiced business ethics, and insisted on independent R&D and innovation. We have not infringed upon any third-party trade secret," the company said in a statement with TechCrunch.
The company Qingtian Truck, which Pony.ai sued in court, specializes in the R&D of self-driving trucks and logistics transportation systems. Pan Zhenhao founded it back in November 2021.
This article is owned by Tech Times
Written by Joaquin Victor Tacla
