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Tuesday, 18 January 2022 08:19

Toyota Announces Production Line Shutdowns, Reduced Output Amid Continuing Chips Shortage

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Toyota on Jan. 18 announced it will produce about 150,000 fewer vehicles in February than originally planned as it deals with the ongoing semiconductor shortage.

As a result of the revision, Toyota's full-year production forecast for the fiscal year ending March 31 is expected to fall short of the previous forecast of 9 million units.

 

Toyota said it will suspend operations for as many as 13 days in February on 11 production lines in eight factories in Japan---out of 28 lines in 14 factories---that produce models including the Corolla, RAV4, Camry and Prius, and Lexus models including the LS, IS, NX and UX.

 

"At Toyota, we have made repeated adjustments to our production plans due to a parts shortage resulting from the spread of COVID-19, causing various inconveniences to our customers and all parties concerned," the company said. "We would like to express our gratitude to everyone involved for their immense support in helping us maintain production."

 

Toyota said it now expects to produce 700,000 vehicles in February.

 

"Current demand is very strong; therefore we were aiming for a high February production plan," the company said. "However, due to the impact of the continuing demand for semiconductors across all industries, we have adjusted our production plan by around 150,000 units globally."

 

Toyota said it will continue to examine the shortage of semiconductor-related parts and consult with all companies involved in considering the use of substitutes where possible, in anticipation of a continuing shortage.

 

The company will also continue to work with suppliers in strengthening the supply chain and make every effort to deliver vehicles to customers as soon as possible.

 

"We would like to offer our sincerest apologies to our customers and suppliers for the various inconveniences these adjustments may cause," Toyota said.

 

Source: Toyota