Toyota Motor Corporation announced Tuesday it would cut its global production plan by about 100,000 vehicles in June. Toyota said the adjustments to its production plans become necessary considering the impact of semiconductor shortages.
The company in a statement said the adjustments to its production plans become necessary considering the impact of semiconductor shortages.
“Due to the impact of semiconductor shortages, we have adjusted our production plan by tens of thousands of units globally from the number provided to our suppliers at the beginning of the year,” the carmaker said.
Toyota Motor Corporation, a multinational automotive manufacturer headquartered in Toyota City, Aichi, Japan, produces roughly 10 million vehicles annually and is regarded as one of the largest automobile manufacturers in the world,
Earlier in May, the company forecast a decline in operating profit by 20 per cent for the current fiscal year owing to an unprecedented surge in logistics and raw materials costs, according to Bloomberg.
It said the global production plan for June stands at about 850,000 units, (250,000 units in Japan and 600,000 units overseas).
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It is setting sights on producing about 850,000 units globally a month on average from June through August and 9.7 million units for the full period of fiscal year 2023.
“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.
“Due to parts supply shortages caused by the lockdown in Shanghai, we have decided to suspend operations in May and in June,” the company stated.
Source: Premium Times
