Toyota Motor said on Friday it had told its suppliers it will slash domestic output by up to 20% from an earlier plan for the three months from April.
The reduction is part of an effort to alleviate the burden on suppliers forced to adapt to repeated production plan changes due to acute shortages of semiconductors and other supplies, the Japanese company said.
Toyota said it is planning to scale back domestic production by about 20% in April, about 10% in May and about 5% in June from its previous the plan.
Toyota president Akio Toyoda told a Wednesday meeting with union members that suppliers would be “exhausted” unless there was a “sound” production plan.
Toyoda said April through June would be “an intentional cooling off” period to make safety and quality the highest priorities.
The spokesperson said the effort was a reflection of Toyoda’s intention to share information early with suppliers so they can plan their production.
- Reuters with additional editing by Sean OMeara