As the entire automotive industry continues reeling from a global semiconductor shortage, many manufacturers have been forced to temporarily shut down production, or just go ahead and build cars without necessary components and store them until a later date. Not Toyota, though.


Toyota was prepared for the microchips to dry up. Not because it had a premonition that the pandemic was coming, but because it — along with the entire Japanese car industry — went through a similar ordeal after the devastating Tohoku earthquake of 10 years ago. Except, unlike its peers, Toyota learned from that episode, and instituted policies that are allowing it to maintain a steady pace of production today. An article published Wednesday by Bloomberg Businessweek explained the automaker’s inventory workflow:

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Why Was Toyota The Only Automaker Prepared For The Semiconductor Shortage?

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