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Friday, November 26, 2021

Toyota will cut production by 15 per cent in November amid chip shortages.

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Credit…Michelle Spingler / The Associated Press

Japanese automaker Toyota said on Friday it would cut its November production target by up to 15 percent at home and abroad as the pandemic and global semiconductor shortages made it difficult for the company to meet its short-term manufacturing targets.

Automakers around the world have struggled to accelerate demand for their vehicles as pandemic restrictions ease in the world’s biggest auto markets and consumers make up for lost time. The European Automobile Manufacturers Association said on Friday that new car registrations in September fell 25 percent from a year earlier, mainly because dealers didn’t have enough cars to sell due to a shortage of semiconductors.

The automotive industry has been hit hard by factors such as global shortages of semiconductors – supply chain crises and rising sales of home electronics during the lockdown, the European Manufacturers Association said, with Volkswagen reporting a 28 percent decline for September. Several automakers last year reduced orders for parts due to uncertainty about the pandemic’s impact on sales, and they are now struggling to source new components.

Other industry players have announced cuts to their manufacturing plans as a result, but Toyota, which had a stockpile of chips, was able to last longer than its competitors.

In September, however, Toyota announced substantial cuts to its production targets for September and October, citing a shortage of semiconductors and difficulties in obtaining parts from suppliers in Southeast Asia, which were affected by the coronavirus. .

Toyota initially planned to produce one million vehicles in November, hoping to make up for past production shortfalls and meet strong global demand.

But continued difficulties in getting supplies have forced it to change those plans. The company now projects that it will make 850,000 to 900,000 vehicles next month. It made 830,000 vehicles during the same period last year.

In a statement posted on its website, Toyota said it still expected to meet its annual production forecast of nine million vehicles — adjusted from 9.3 million in September — by the end of the next fiscal year.

The company said it was considering strategies to address its supply chain difficulties, noting that “we expect semiconductor shortages to continue over the long term.”

Credit…Carsten Moran for The New York Times

Rents are rising after a brief pandemic slowdown, burdening homes and fueling overall inflation. This is bad news for the Federal Reserve, as this latest bullish price advantage could be prolonged. It is also problematic for the White House because it hits households right in their pocketbooks, undermining well-being and increasing unhappiness among voters.

Read Also:  Photo: Master Berkeley's home sold for $ 1.5 million over asking price.

A combination of factors seems to have created a perfect storm that pushed the consumer price index up 0.5 percent from the month before in September, the fastest pace in nearly 20 years.

This is a concern for the Fed, because housing prices tend to rise slowly and once they go up, they stay up for a while, Jenna Smilek writes for The New York Times. Rent data is also called “owners par rent” – which tries to put a price on how much owners would pay for the home if the home had not been purchased. Overall, housing measures make up about a third of the overall consumer price index.

Overall consumer prices jumped sharply in 2021, up 5.4 percent in September from the previous year. Fed officials are betting that the move is temporary, but they are watching the housing measures as carefully as they pose a risk to that outlook.

Rent is a big part of consumers’ experience with prices, so it can help shape their expectations about future cost increases.

Those expectations mean a lot to the Fed. If consumers anticipate rapid inflation, they may begin demanding higher wages to cover their rising expenses. As businesses raise prices to cover rising costs, this can set off an upward spiral. Some of the key measures of inflation expectations have already jumped higher.

Economic policymakers have said inflation will prove temporary, but rising rents could challenge that outlook and pressure Washington to react. Read article →

Credit…Strange Anderson / Agency France-Press – Getty Images

Just as economies return to normal, the UK, the rest of Europe and much of the world are facing energy shortages.

Natural gas, the main focus of this squeeze, is important for generating electricity, running factories and heating homes. Some also see it as a transition fuel away from highly polluting coal.

Natural gas prices have risen nearly six times to record levels. The boom means that the wholesale price of electricity has reached stratospheric levels, and consumers, battered by the pandemic, are hit by large increases in their household energy bills. These high costs are also undermining the economics of companies that make fertilizers, steel, glass and other materials that require a lot of electricity.

Britain, whose electricity system is heavily dependent on gas, is taking some of the hardest hit, causing major headaches for Prime Minister Boris Johnson’s government.

The surge in gas prices is also making geopolitical ripples. Europe’s biggest gas supplier Russia is being accused of manipulating prices. In return, the United States has warned Moscow not to try to exploit the gas shortage for its own ends. The pinch could open the way for more exports of liquefied natural gas from shale drilling in the United States.

Stanley Reid, who reports on energy and the environment for The New York Times from London, answers questions about the crisis, including why natural gas prices have risen so high and why Britain is in such a bad shape. Read article →

World Nation News Deskhttps://www.worldnationnews.com
World Nation News is a digital news portal website. Which provides important and latest breaking news updates to our audience in an effective and efficient ways, like world’s top stories, entertainment, sports, technology and much more news.
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