Toyota cuts auto production target for obvious reasons

While some industry analysts expected the global chip shortage to ease towards the end of the year, automakers are still struggling to keep production at full capacity, this time due to a painful combination of the lack of semiconductors and the health crisis.

Toyota, for example, recently confirmed that the invisible enemy the planet has been battling for nearly two years already continues to wreak havoc on some of its parts factories, and more recently, facilities in Vietnam and Malaysia. were also affected by the same problems. .

All of this has resulted in slowdowns in terms of manufacturing operations, which means Toyota can no longer maintain the same speed of assembly of vehicles in its other factories.

Ultimately, therefore, the Japanese automaker has to contend with not only this slowdown but the chip crisis as well, and in some cases it is almost impossible to keep production unchanged.

That’s why Toyota lowered its production target for the year ending March 31, explaining that it expects to build some 300,000 fewer cars than originally planned. Toyota now plans to manufacture 9 million vehicles, compared to 9.3 million units, with no change in operating profit.

On the other hand, Toyota hopes that everything will recover in the coming months. The company has already announced a reduction of 360,000 vehicles in global manufacturing for this month, and it expects production of an additional 400,000 cars to be impacted by the end of October.

But despite all the bad news, the Japanese automaker is still confident it will recover in the coming months, so despite the production cut, the numbers would rise again by the end of the year and early in. 2022, especially since the company is trying to build up the chip inventory so as not to affect its operations.

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