Japanese automaker Toyota Motor Corp. is making plans to produce an average of about 800,000 vehicles a month worldwide in April and June due to concerns regarding shortages of specific parts.
According to Toyota, the cut in production is due to a persistent shortage of semiconductors for cars, which is why the automaker is taking drastic steps in producing a set number of cars calling it a ‘deliberate move’.
Toyota further added that the actual production volumes could be lower because it is difficult to determine supply conditions several months in advance.
The world’s No. 1 automaker has already announced plans to cut production in Japan by 20% in April, 10% in May and 5% in June. The global auto industry has faced a wave of supply chain problems and disruptions from a variety of causes, such as the Covid-19 pandemic, cyberattacks and the Russian invasion of Ukraine.
Toyota Purchasing Manager Kazunari Kumakura said Thursday that the company will continue to feel the effects of the Covid and semiconductor shortages. He said production is running at normal levels, but not to the extent that it will recover the lost volumes.
Toyota affected by semiconductor shortage
Toyota manufactured an average of about 750,000 vehicles per month during the April-June period a year earlier but due to a wave of challenges and supply-chain disruptions in recent months, a lot has come into play that has affected the production output.
Kumakura also warned that it’s unlikely that the automaker will be able to exceed its production plans unveiled on Thursday for the quarter due to rising risks.
Earlier this week, Toyota was forced to halt its plant in China’s Changchun city in response to local authorities ordering the northeastern city’s 9 million residents into lockdown due to a coronavirus outbreak.
The spread of Covid in China is one of the risks Kumakura foresees in the months ahead. The potential impact is “undeniable,” he said.
Author: Allan Bangirana
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