11 Mar 2022
Toyota Slashes Quarterly Manufacturing to Relieve Distressed Suppliers
The Index Today
Toyota Motor Corp is set to cut back its quarterly production goals for the months of April, May and June by as much as 20% in an effort to relieve its hard-pressed suppliers reeling under supply chain shortages, the company said on Friday.
This comes in light of supply chain concerns fueled by the COVID-19 pandemic which has resulted in chip and semiconductor scarcity, negatively impacting the electronics and automobile industries.
A Toyota spokesperson revealed that the automaker intends to lower domestic production by an estimated 20% in April, 10% in May, and by about 5% in June, Reuters reported. Toyota chief Akio Toyoda informed union members about the risks of exhausting suppliers in the absence of a solid production schedule leading to “an intentional cooling off” term.
Toyota is set to manufacture a whopping 11 million cars in the financial year 2022, provided it has access to a steady supply of chips.