Toyota cuts global production again as semiconductor shortages, supply chain disruptions linger

Toyota is cutting its global production plan next month by some 50,000 vehicles as semiconductor shortages and COVID-induced supply chain disruptions persist.

The Japanese automaker said its plan for July was initially to be 800,000 units – 250,000 in Japan and 550,000 overseas.

The Toyota logo is seen on its stand during a media day for the Auto Shanghai show in Shanghai, China, April 19, 2021. (REUTERS/Aly Song/File Photo/Reuters Photos)

Toyota said it will extend the period of suspension of operations at some of its factories and production lines due to the continued impact of the COVID-19 outbreak.

“As it remains difficult to anticipate due to the shortage of semiconductors and the spread of COVID-19, it is possible that the production plan will be lower,” Toyota said in a statement. “However, we will be looking closely at parts sourcing to minimize sudden drops in production and will continue to do everything we can to deliver as many vehicles to our customers as soon as possible.”

MODERNA CEO: VARIANT COVID VACCINE WILL BE READY TO SHIP IN AUGUST

The company said it expects global production volume from July to September to average around 850,000 units per month. The production forecast for the year remains unchanged at around 9.7 million units.

CLICK HERE TO GET THE FOX BUSINESS APP

Shortages of semiconductor chips and supply chain issues have weighed heavily on the automotive industry. Things have only been made worse by the COVID-19 lockdown in Shanghai. Toyota had previously scaled back its global production plan for June, blaming the lockdown in Shanghai.

Leave a Comment