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Toyota Faces More Microchip Hurdles, Makes Tougher Decisions for April

It seems the auto industry disruptions had taken a break and are back for a second wave. For the past two weeks, automakers have either halted production, switched stations, or completely closed down factories due to the Russia-Ukraine war, a new wave of the global pandemic, or a sudden shortage of microchips. On Thursday, Toyota issued yet another painful decision to cut global production by 17% in April.
Toyota Steering Wheel 6 photos
Toyota's European Manufacturing Plants and OperationsToyota's European Manufacturing Plants and OperationsToyota's European Manufacturing Plants and OperationsToyota's European Manufacturing Plants and OperationsToyota's European Manufacturing Plants and Operations
A week ago, the Japanese automaker announced it would halt production in one of its domestic plants due to a lack of semiconductors. Toyota said it would go offline for 8 days starting on March 22.

In April, Toyota plans to cut its global production target by 150,000 units, down to 750,000 units.

The Japanese giant had earlier said the global chip shortage was making it extremely difficult to maintain the production of vehicles at the same level. It added that it would likely miss its production target of 11 million units.

According to the released statement, Toyota says it is hard to foresee the situation several months ahead, and it would likely revise its current plan downward, Reuters reported.

The Japanese automaker, like many others, was certain the chip shortage would ease. Toyota was so optimistic it even announced a target of no less than 11 million units for the 2022 fiscal year.

Kazunari Kumakura, Toyota executive, said that its global production would be reduce by 10% in May and by 5% in June according to previous estimates at the beginning of the year.

The elusive semiconductor shortages have disrupted its production patterns and, as a result, have led to supply chain issues, prompting Toyota President Akio Toyoda to call for an 'intentional cooling-off period' between April and June.

The elusive micro-chips are just but a fraction of Toyota’s problems. The sudden upsurge of the global pandemic in China forced it to suspend a joint operation with FAW Group. The Japanese automaker is not directly affected by the ongoing Russia-Ukraine war.

Editor's note: Images featured are for illustration purposes

 
 
 
 
 

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