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The Delta variant continues to impact the auto industry, creating shortages is computer chips and other parts

With another surge of COVID, auto production will not be returning to normal like previously anticipated.

Southeast Asia is experiencing a surge, and this is resulting in their auto plants closing down there, as well as other places around the world.

Toyota, the largest automaker, announced this week it would be closing down 14 Japanese plants by Sept. due to COVID’s impact on its suppliers. The company is closing other plants, which with everything combined will reduce North American production by up to 60%.


Volkswagon, the second largest automaker, will likely make similar decisions.

Malaysia is suffering greatly from the outbreaks, closing many plants down, and they’re one of the biggest supplier of computer chips for vehicles.

Chips are in major shortage, but so are many other parts now.

Automakers had predicted a bounce back this quarter but once the Delta variant started to spread, that did not happen.



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