Toyota cuts production target by 3pc

12 Sep, 2021 - 00:09 0 Views
Toyota cuts production target by 3pc

The Sunday Mail

Toyota Motor Corp cut its annual production target by 300 000 vehicles on Friday as rising Covid-19 infections slowed output at parts factories in Vietnam and Malaysia, compounding a global shortage of auto chips.

Unlike other big global automakers that were forced earlier to scale back production plans, Toyota had managed to avoid cuts to output because it had stockpiled key components along a supply chain hardened against disruption following northeast Japan’s devastating earthquake in 2011.

Toyota now expects to build 9 million vehicles in the year to March 31, rather than 9,3 million.

Adding to a 360 000 vehicle cut in worldwide production in September, Toyota said on Friday it will reduce output by a further 70 000 this month and by 330 000 in October.

Demand for chips has soared during the pandemic as consumer electronic companies rush to meet stay-at-home demand for their smartphones, tablets and other devices.

German luxury carmaker Daimler this month said it expects chip shortages to significantly lower third quarter sales. — Reuters

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