Toyota Cuts Production Cars Again

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Automaker Toyota has again adjusted its production plans. The Japanese company will build 400,000 fewer cars than it had planned after an earlier adjustment in September and October.

 

Toyota cites parts shortages due to the revival of the corona pandemic in Southeast Asia as the reason for the adjustment.

In September, Toyota originally wanted to make 900,000 cars but cut that by 40 percent to 540,000 vehicles in August. Now the company is scrapping another 70,000 cars from its production target. In October, planned production will be reduced by 330,000 cars.

The first reduction in August was mainly due to chip shortages, but other parts are now also missing because factories where they are made, have been shut down due to corona outbreaks. Toyota has factories in China, Japan and Thailand, among others. Still, the company’s suppliers are also in other countries where stricter measures apply due to the Delta variant of the coronavirus.

Demand for cars remains strong, Toyota notes. As a result, the company is sticking to the original production plans for the months of November to March. For the entire fiscal year, which ends in March, Toyota now expects to build 9 million cars. That was 9.3 million vehicles.

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