Toyota to cut production worldwide by 10 percent

Toyota to cut production worldwide by 10 percent 1

Toyota Motor Corp. will have to cut production at plants around the world. As reported by the Nikkei Asia agency with reference to the company’s statement, in May, 10 percent fewer cars will come off Toyota’s assembly lines than planned – that is, by about 700,000 units. It was decided to cut production of Toyota and its premium subsidiary Lexus because of the shortage of components.

The plants located in Japan will reduce car output by 200,000 cars in May. In other countries, plants will produce about half a million cars in the last spring month, which is 100,000 less than originally planned.

The reason for the sharp adjustment to the plan is the new circumstances that have intensified the already big problems with the availability of assembly parts. Large-scale lockdowns have been introduced in China, where the components come from, because of the anti-record incidence of coronavirus. The logistics chains were also affected by the situation around Ukraine. Other manufacturers were also impacted: for example, BMW and Volkswagen were forced to stop their European plants in March due to the lack of electric cables produced in Ukraine.

Source: Nikkei Asia