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Toyota cuts production target by 300,000 due to shortage of parts and chips

Tokyo – Toyota An increase in COVID-19 infection delayed production at parts plants in Vietnam and Malaysia, exacerbating the global shortage of automotive chips, reducing annual production targets by 300,000 on Friday.

“It’s a combination of coronavirus and semiconductors, but at the moment it’s the coronavirus that has the overwhelming impact,” said Kazunari Kumakura, executive of the world’s largest automaker, after the company revised its production targets. rice field.

Unlike other major global automakers that were previously forced to reduce production plans, Toyota stockpiled key components along a supply chain that was strengthened against the turmoil that continued in the northeast, resulting in production volume. I was able to avoid the reduction Japanese The 2011 catastrophic earthquake.

Toyota’s announcement on Friday has not escaped the effects of a pandemic that has lost sales and hindered its ability to take advantage of the recovery in demand following the first wave of COVID-19 in any part of the global automotive industry. It is a further sign.

Car sales at China In August, the number of vehicles purchased was low, resulting in a decrease of nearly one-fifth year-on-year.

Toyota currently expects to produce 9 million vehicles in the year to March 31, instead of 9.3 million. It did not revise its forecast for operating profit of 2.5 trillion yen ($ 22.7 billion) for the current fiscal year.

Toyota announced on Friday that it will reduce global production by 360,000 in September, plus another 70,000 this month and 330,000 in October. We hope to make up for some of the production lost by the end of the year.

Demand for chips surged during the pandemic as consumer electronics companies rushed to meet the home demand for smartphones, tablets and other devices.

Reliance on Southeast Asian factories for parts is a headache for Toyota, but it is also a problem for rivals who are suffering from anything. Volkswagen Described as a “very unstable and tight” tip supply.

German automakers have warned that production may need to be further reduced as a result. Ford Last month, we stopped production at our best-selling factory in Kansas. F-150 Pick up due to parts supply issues Renault Extend a partial outage at a factory in Spain.

Mercedes This month said it expects Shortage of chips Significantly reduce third-quarter sales.

(Report by Tim Kelly; edited by Muralikumar Anantharaman and Kim Coghill)

Toyota cuts production target by 300,000 due to shortage of parts and chips

Source link Toyota cuts production target by 300,000 due to shortage of parts and chips

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