Toyota Output Shrinks For Fourth Month On Shortages, China Curbs
Toyota Motor Corp.’s global output sank for the fourth straight month as a shortage of semiconductors and supply chain disruptions caused by Covid lockdowns in China hurt production.
“Hitting the 9 million mark is going to be extremely difficult,” Kazunari Kamakura, an executive at the world’s biggest carmaker, said during an online briefing. Toyota, he added, could not predict how long the chip shortage would last.
Toyota and other automakers have been forced to curb production even as demand in key markets such as China has rebounded. In addition to tackling chip shortages caused by COVID-19 supply-chain disruptions, carmakers also have had to contend with soaring semiconductor demand at consumer electronic companies.
The surge in Omicron infections did not factor into the latest production outlook, but it is, nonetheless, a concern for Toyota, Kamakura said. Toyota’s business year runs from April to March.
COVID-19 lockdown restrictions last year disrupted supplies of components from plants in Southeast Asia.
The maker of the Corolla compact sedan said it will build 700,000 cars globally in February, more than last year, but 150,000 fewer than it had initially planned.
To reach its annual 9 million production target, set in September, Toyota would have to build 1 million vehicles in March.
In North America, Toyota forecasts a reduction of about 25,000 to 30,000 vehicles in February.
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To support their goal of manufacturing quality parts, Toyota Industries Corporation and Siemens have cooperated to develop artificial intelligence (AI) that can predict product abnormalities in aluminium die casting, a key process in automotive air conditioning compressor production.
The development is one of the world’s first to use defect prediction AI for die casting. It improves quality and productivity by utilising the AI application in Industrial Edge, the Siemens edge computing platform for industry. The initiative is an innovative example of digital transformation in manufacturing, and Toyota Industries Corporation aims to use it to further evolve their technology and incorporate it into their production plants in Japan and overseas. Siemens hopes that more businesses in the manufacturing industry will adopt their digitalisation and automation solutions such as Industrial Edge.
Aluminium die casting is a high-speed moulding process in which molten aluminium is shot into a die at high pressure. It is ideal for the accurate manufacture of metal cast parts that demand high dimensional precision, and therefore is often used for automotive parts that require high quality and reliability. The die casting process is challenging to manage due to a range of constantly changing production conditions such as variations in the molten aluminium temperature or the injection rate. Success relies on the judgement of experienced workers, and sometimes the parts require secondary processing to handle abnormalities and maintain high quality standards.
During development, the two companies used a Siemens Simatic S7-1500 controller to gather big data totaling approximately 40,000 data points per die casting shot at the model line and then analysed the data using AI technology. They succeeded in preventing defects and improving quality by monitoring the production status in real time and automatically predicting equipment abnormalities that lead to quality issues. The production data is processed by the defect prediction AI on Industrial Edge, enabling instant analysis of the data on production conditions at the time of a shot and assessment of the part quality immediately after the casting. This series of AI technologies boosts productivity, improves quality, and transforms how operators work
“Digital transformation is a game changer. I am delighted to have the opportunity to partner with Toyota Industries Corporation in this revolutionary endeavor and to work together to forge the future,” says Rainer Brehm, CEO of Factory Automation, Siemens AG. “We will continue to develop and provide solutions for industries incorporating the latest technologies and to contribute to optimised and sustainable manufacturing.”
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Mazda Toyota Manufacturing, (MTM), the new joint-venture between Mazda Motor Corporation and Toyota Motor Corporation, has announced an additional $830 million investment to incorporate more cutting-edge manufacturing technologies to its production lines and provide enhanced training to its workforce of up to 4,000 employees.
Total funding contributed to the development of the state-of-the-art facility in US is now $2.311 billion, up from the $1.6 billion originally announced in 2018. The investment reaffirms Mazda and Toyota’s commitment to produce the highest-quality products at the facility. It also accommodates production line enhancements made to improve manufacturing processes supporting the Mazda vehicle and design changes to the yet to be announced Toyota SUV that will both be produced at the plant.
The new facility will have the capacity to produce up to 150,000 units of a future Mazda crossover vehicle and up to 150,000 units of the Toyota SUV each year. MTM continues to target up to 4,000 new jobs and has hired approximately 600 employees to date, with plans to resume accepting applications for production positions later in 2020.
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