TOYOTA PROFIT DOWN AS CHIPS SHORTAGE KEEPS CUSTOMERS WAITING

Toyota’s profit fell nearly 18% in the AprilJune quarter from the year before, as a semiconductor shortage that has slammed the auto industry dented production at Japan’s top automaker.

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Toyota Motor Corp. reported Thursday a quarterly profit of 736.8 billion yen ($5.5 billion), down from 897.8 billion yen the previous year.

Quarterly sales rose 7% to 8.49 trillion yen ($63 billion).

Toyota officials apologized to customers who have been waiting for their cars after putting in orders. Some have waited so long the vehicle went through a model change in the meantime.

Various problems apart from the chips shortage have hurt production, such as flooding in South Africa and pandemic lockdowns in Shanghai, according to the manufacturer based in Toyota City, central Japan.

Electric vehicles, which need many chips, have been the worst hit by the global chips crunch. Rising material costs also hurt Toyota’s bottom line.