Toyota is slashing its global production plan by some 50,000 vehicles next month as there is a semiconductor shortage and supply chain disruptions caused by COVID continue.
The Japanese automaker said its plan for July would originally be 800,000 units — 250,000 in Japan and 550,000 overseas.
Toyota said it would extend the suspension of operations at some of its factories and production lines due to the ongoing impact of the COVID-19 outbreak.
“As it remains difficult to look ahead due to the semiconductor shortage and the spread of COVID-19, there is a possibility that the production plan may be lower,” Toyota said in a statement. “However, we will closely monitor the supply of parts to minimize sudden production declines, and we will continue to make every effort to deliver as many vehicles as possible to our customers by the earliest date.”
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The company said it expects global production volume for July through September to average about 850,000 units per month. The production forecast for the fiscal year, meanwhile, remains unchanged at approximately 9.7 million units.
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The shortage of semiconductor chips and supply chain problems have weighed heavily on the automotive industry. Things have only been exacerbated by the COVID-19 lockdown in Shanghai. Toyota previously cut its global production plan for June and blamed the lockdown in Shanghai.