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Toyota Cuts Global Output Target as Chips Crisis, Covid Bite

Japanese auto giant Toyota says it plans to hack back its April global production by 17% to 750,000 units


Toyota said on Thursday its first quarter operating profit dropped by 42%.
Covid lockdowns and the global chips shortage hit auto production at Toyota's factories in China and other places. File photo: Reuters.

 

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.

 

Also on AF: Japan Quake Halts Chip Output in New Threat to Auto Firms

 

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

 

Read more:

Chip Crunch Forces Further Production Cuts At Toyota

Toyota Cuts Domestic Output by up to 20% From Earlier Plan

Toyota to Restart Production After Cyber Attack on Supplier

 

Sean O'Meara

Sean O'Meara is an Editor at Asia Financial. He has been a newspaper man for more than 30 years, working at local, regional and national titles in the UK as a writer, sub-editor, page designer and print editor. A football, cricket and rugby fan, he has a particular interest in sports finance.

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