TOYOTA

The Japanese brand announced this Thursday (14/10) a reduction of about 15% or 150,000 vehicles in November production due to the global shortage of chips and the risk posed by energy problems in China

The automaker will reduce production in Japan by around 50,000 units and international production by around 100,000 units, putting this month's production volume between 850,000 and 900,000 vehicles, it said in a statement.

The production cut follows a 40% reduction in production between September and October due to the impact on Toyota operations of the resurgence of Covid-19 contagions in Southeast Asia, which caused problems in its component supply chain.

Toyota production in November 2020 was around 830,000 units, and in September this year it was between 500,000 and 600,000, as is its estimate for the current month, according to figures provided by the company.

“Actual production has remained below forecast levels since August,” said Toyota, which has made production readjustments since then as Japan and other countries in the region were experiencing spikes in new cases of the disease.

The car maker pointed to semiconductor shortages as the main driver of the new cut, and company sources told the Nikkei newspaper that energy problems in China represent a further disadvantage for component reception.

As we expect semiconductor shortages to continue in the long term, we will consider using substitutes whenever possible. In this way, we will make every effort to ensure that we deliver as many cars to our customers as quickly as possible,” said Toyota.

Toyota revised its 2021 production forecast to nine million units in September, down 3% from previously estimated.

The manufacturer maintains this goal after Friday's announcement and also its financial forecasts for the current fiscal year, as it believes that the cost reductions will offset the decline in sales.

Autonews