Days after the Japanese automaker, Toyota Motor Corp, decreased its home manufacturing goal by as a lot as 20 p.c for the April-June quarter, on March 15 it introduced to make extra manufacturing cuts in March because of a scarcity of semiconductor chips.
Toyota stated it could droop manufacturing on one line at a manufacturing unit for eight weekdays beginning March 22 via the top of the month. That is along with the suspension of home manufacturing at two factories introduced final month.
Production of about 14,000 Noah and Voxy minivans could be affected by the most recent suspension, a Toyota spokesperson stated. Last week, Toyota stated it could decrease manufacturing for 3 months beginning April to ease the pressure on suppliers, which have been battling the shortages of chips and different elements.
The information follows Toyota’s announcement on March 14 that it could halt manufacturing at its three way partnership plant with FAW Group within the metropolis of Changchun, China, because of contemporary Covid-19 curbs. Despite the cuts, Toyota would preserve its 8.5 million automobile manufacturing goal for the 12 months, the spokesperson stated.
A worldwide chip scarcity has plagued corporations from smartphone makers to shopper electronics corporations and carmakers, forcing corporations together with Toyota to repeatedly reduce manufacturing at the same time as uncooked materials prices rise. US EV maker Rivian Automotive warned final week that supply-chain points might power it to chop deliberate manufacturing by half this 12 months.
German carmaker Volkswagen stated on March 15 it offered 2 million fewer automobiles than deliberate final 12 months as a result of chip crunch and warned that ongoing provide bottlenecks, excessive commodity costs, and the Russia-Ukraine battle might hit development in 2022.
Toyota, Volkswagen, and different automakers have stopped manufacturing at their Russian crops because of provide chain disruptions after the nation invaded Ukraine. Shares in Toyota closed up 2.14 p.c on March 15, whereas Tokyo`s benchmark Nikkei 225 closed up 0.15 p.c.
(With inputs from Reuters)