Toyota Announces More Production Cuts in June and July for Japan

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Toyota Motor Corp on Thursday said it would initiate another factory line suspension in June and July for obvious reasons. The Japanese giant, through a statement, apologized to its clients for the repeated adjustment of production plans saying it was due to parts shortage resulting from the spread of COVID-19.
It seems no car maker is safe from the semiconductor shortage. At the beginning of the chip crisis, Tesla and Toyota enjoyed seamless production, and that was thanks to a large inventory of the chips.

But this year, the Japanese giant cut production in its domestic plants more than twice owing to the elusive microchips caused by harsh lockdown restrictions in China.

Tesla, which consistently increased production while other automakers shut down, is suffering the same fate after reports showed it started building cars with missing chips.

According to the statement, Toyota will suspend operations at some of its local plants from June 17 (Friday) due to low attendance caused by a COVID-19 outbreak at one of its suppliers and a shortage of parts supply caused by equipment defect at another supplier.

During Toyota’s annual general meeting on Wednesday, part of the key questions raised by investors was the company’s strategy on solving the chip crisis. Thursday’s announcement is the third time the automaker has adjusted June production plans.

Toyota now says it will produce 750,000 units (initially 800,000) worldwide for June and will announce July figures later. It also noted that it is difficult to look ahead due to components shortage and the spread of COVID-19, indicating there was a possibility the production plan might be lower.

The largest automaker by sales was under fire during its annual general meeting on Wednesday after its European Pension Fund Investors criticized it for its lobby activities and its stand on electrification. Toyota hit back, saying itheir consumers will determine its course of action and that they plan to continue developing their hybrid models along with BEVs.
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About the author: Humphrey Bwayo
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Humphrey is a car enthusiast whose love and passion for automobiles extended into collecting, writing, driving, and working on cars. He got his passion for cars from his Dad, who spent thousands of hours working on his old junky 1970 E20 Toyota Corolla. Years later, he would end up doing the same with a series of lemons he’s owned throughout his adult life.
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