Shanghai Shutdown Forces Toyota To Cancel Some Harrier Orders

For the second time this month Toyota has been forced to cancel firm customer orders for one of its models because of parts shortages in turn caused by the Covid-19 shutdown of Shanghai, China earlier this year.
Toyota Harrier 7 photos
Photo: Toyota
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The Harrier model cancellations and an alternative option for those affected were made public today. The company hopes to entice those customers whose orders were canceled to purchase a newer model Harrier which it plans to release in September with a slight price increase. Details including the price and improvements to the new model have not been made public. Toyota is considering absorbing the price increase, expected to be in the 100,000 yen range ($732.33/715.40 euro), on a shared basis with dealers to retain the business.

Reuters reported that roughly 74,000 units of Harrier were sold domestically last calendar year, citing the Japan Automobile Dealers Association.

Earlier this month the company announced it stoped taking orders for its Land Cruiser SUV because demand was outpacing production capabilities.

Much like other automakers, Toyota, the world's largest automaker, continues to grapple with supply disruptions and parts shortages, and last week informed suppliers of a global 18% reduction in production from its forecast at the beginning of the year.

In late March, Beijing initiated a shutdown of Shanghai. The city of 26 million people is the largest and wealthiest in the country, and is home to its largest port. The shutdown was to initially be for one week and staggered over different parts of the sprawling metropolis. However, a spike in Covid cases during the first week of April extended the shutdown.

Entering the second week of April, Beijing released a 'white list' of 666 companies that would be allowed to reopen or keep Shanghai operations going. Tesla, Volkswagen and its Chinese partner SAIC Motor, as well as semiconductor and medical firms, were included in that list.

The impact of the shutdown continues to ripple and heavily impact the auto industry from Europe and Asia to Detroit. Some automakers have said they expect the supply chain disruptions to continue into next year.
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