Toyota is cutting back on the number of production hours at its San Antonio plant to conserve power.
A spokesperson for the Japanese automaker said Toyota is planning to stop production before 2 p.m. and reduce its night shifts as Texas faced an extreme heat wave with temperatures rising above 100 degrees, according to a Reuters article.
The power grid operator in Texas, the Electric Reliability Council of Texas (ERCOT), took steps on Wednesday to avoid rolling blackouts. ERCOT asked businesses and consumers to conserve power starting on July 11 as demand and temperatures rose.
The Toyota plant had previously scheduled five days of summer shutdown next week, and added two additional days due to a global semiconductor shortage, Toyota said. The seven days of closures are unrelated to the heat wave, the spokesperson added.
Other companies in Texas have scaled back their power usage, including Samsung Electronics Co Ltd. as the heat wave continues into the fourth day.
“We are carefully monitoring the weather conditions and communicating with local authorities, and will adjust our plans accordingly,” Samsung said in a statement on Thursday.
Extreme heat and cold both are a challenge for the Texas power grid. In Early 2021 a prolonged cold snap left thousands without power in the state.
Semiconductor Chips Still Backlogged
Toyota’s cutbacks come as automakers continue to face supply chain issues that have plagued the industry since the start of the pandemic.
Semiconductor companies such as OnSemi (ON) – Get ON Semiconductor Corporation Report, NXP Semiconductors (NXPI) – Get NXP Semiconductors N.V. Report and Microchip (MCHP) – Get Microchip Technology Incorporated Report that manufacture microcontrollers and power management chips for the automotive industry will face constraints into the second half of the year, Angelo Zino, an equity analyst at CFRA, a New York-based investment research company, previously told TheStreet.
The Toyota plant in San Antonio manufactures pickup trucks, including the full-size Tundra and compact Tacoma Pickup. It has about 2,600 employees.