Toyota Cuts September Output Due To Chip Crunch, COVID Spike
Toyota Motor Corp. said it will slash global production for September by 40% from its previous plan, becoming the last major automaker to cut output due to a global chip crunch, but it maintained its annual sales and production targets.
Photo Insert: Toyota and almost every other automaker has hit huge roadblocks in the chip shortage and the pandemic.
Toyota's success in navigating the chip shortage better than rivals has come down to its larger stockpile of chips under a business continuity plan adopted after the 2011 earthquake and the Fukushima nuclear disaster, Maki Shiraki and Ritsuko Ando reported for Reuters late on August 19, 2021.
The world's largest automaker by sales volumes reiterated on Thursday its global production target of 9.3 million vehicles for the year ending in March, as well as its plan to sell 8.7 million cars in the period.
"The 9.3 million global production plan takes into account certain risks," executive Kazunari Kumakura told reporters. "We want to achieve the numbers."
Toyota said the September cuts included 14 factories in Japan and overseas plants, and that the company would reduce its planned global production that month by around 360,000 vehicles. Of these, 140,000 will be at Japanese plants, with the rest in the United States, China, Europe, and other Asian countries.