Toyota warns of disruption to annual plan due to shortage of chips

Toyota said it will not be able to produce the previously planned 9.7 million vehicles for the current fiscal year, which will end in March 2023. Throughout the year, Toyota is experiencing a serious shortage of components, in particular microchips. Previously, the company has repeatedly adjusted monthly production plans.

Early Spring Toyota warned, which will reduce car production in Japan by 20% in April, by 10% in May, and by 5% in June. In May she had to to suspend part of the production lines at eight factories in Japan. The reason for the stop is interruptions in the supply of components from China, where restrictions were introduced due to the coronavirus.

The company expected that from August to November the situation will improve and it will be able to produce 900 thousand cars a month. But then I had to make adjustments again. As a result, the output plan for September was reduced to 850 thousand, and for October – to 800 thousand. Today, the company notified, that by the end of November, about 800 thousand cars will be produced, which is 200 thousand cars less than the concern originally planned to produce. All this eventually led to the fact that today Toyota lowered its production forecast for the year as a whole, apologizing.

Kirill Sarkhanyants