Toyota has decided to decrease its output again in March as it strives to catch up following a pause in production despite its goal to manufacture a record number of automobiles internationally.
The Japanese automaker slashed its fiscal-year production target several times, seeking to push plant output to the maximum in March to recover its losses due to the shortage of the semiconductor chips. However, persistent delays forced it to reduce its target by 100,000 vehicles and set a new goal of 950,000 units.
Although the revised plan indicates how the automaker’s global semiconductor difficulties are still impacting the company, the goal will still be all-time high (monthly).
Note that its last monthly manufacturing record of 870,000 units was in March 2012.
Toyota’s Previous Warning
Toyota had announced last week that it expects its output of 100,000 to 200,000 units in March to drop due to semiconductor constraints after a loss of 140,000 units in January due to pandemic-induced disruptions. It also expects a reduction of more than 480,000 units between January and March.
Considering the reduction from Toyota, global production will be 8.5 million cars for the fiscal year ending 31 March, down from its previous goal of 8.87 million set in mid-January. It had planned for 9.3 million automobiles at the start of the fiscal year but slashed it to 9.0 million when the chip problem intensified.
Affected Vehicles
Three lines at two factories in Japan will be cut in March, out of a total of 28 lines at 14 facilities. The affected vehicles from the Lexus series include the NX, RX, and UX SUVs, the ES sedan, the C-HR compact crossover, and the Aqua hybrid models.
The automaker’s operating profit dropped by 21 percent in the fiscal third quarter that just ended, due to the semiconductor chip scarcity and pandemic constricting outputs, and curtailing sales and earnings.
The company slashed its overall global sales target for the current fiscal year which ends on 31 March, from 8.55 million to 8.25 million units.
Nonetheless, Toyota fulfilled its fiscal-year profit forecast, claiming that lucrative foreign exchange rates will compensate for its declining sales. The operating profit and net income goals indicate the company’s second-highest earnings on record to be slightly less than the Japanese automaker’s all-time highs.
Toyota also preserved its retail sales prediction for the current fiscal year at 10.29 million vehicles, which includes Daihatsu and Hino. This figure will be higher than the 9.92 million vehicles sold the previous fiscal year and just behind Toyota’s all-time high of 10.6 million vehicles that it sold in the fiscal year that ended in March 2019.
Via Automotive News
