Toyota cutting global production due to semiconductor shortage
Toyota announced on Tuesday that the Japan-based car manufacturer is reducing its production plans in June by “tens of thousands of units globally” due to the semiconductor shortage brought on by the COVID-19 pandemic.
It also announced the suspension of production at various times in May and June as a result of parts shortages caused by the pandemic lockdown in Shanghai, noting that 16 lines in 10 plants would be affected.
While the manufacturer apologized for the inconvenience caused to its customers and suppliers, it said that its yearly estimate of producing about 9.7 million vehicles worldwide by next March remains unchanged.
According to Toyota, around 850,000 units are expected to be produced from June through August.
“The shortage of semiconductors, spread of COVID-19 and other factors are making it difficult to look ahead, but we will continue to make every effort possible to deliver as many vehicles to our customers at the earliest date,” a statement added.
This comes just a week after Toyota reported profit dropped by 31 percent in the January-March quarter from the year before, The Associated Press reported.
The automaker has previously warned that the various effects of COVID-19 and a global parts shortage have hurt its operations and added to uncertainty over its future plans.
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