Toyota Motor Corp is to reduce its global vehicle production target next month by 150,000 units to 750,000 as the ongoing global semiconductor shortage and the Covid-19 pandemic bite into the automaker’s production plans.
The auto giant’s average monthly global production for the period from April to June would now be about 800,000 units, it added on Thursday.
Toyota’s global vehicle production would be down 10% in May and 5% in June compared to previous estimates made at the beginning of the year, a company executive revealed.
The announcement comes roughly a week after it said it would scale back domestic production by up to 20% during the months of April, May and June to ease the strain on suppliers struggling with shortages of chips and other parts.
- Reuters with additional editing by Sean O’Meara