In an attempt to relieve the pressure of dealing with the dearth of microchips and other components, Toyota has informed its suppliers that it will slash its domestic output by up to 20 percent for its previous plan for April through June.
A spokesperson for the Japanese automaker revealed that the scarcity has forced its vendors to make a number of changes to their production timelines, which is why the drop in Toyota’s output may give them some relief. It is also planning to reduce its domestic output by around 20 percent in April, 10 percent in May, and 5 percent in June as opposed to its prior schedule, the spokesperson elaborated.
Toyota’s President, Akio Toyoda, met with union workers on Wednesday and remarked that the vendors are liable to be “exhausted” in the absence of a “sound” production strategy. He added that April, May, and June will be an ‘intentional cooling off’ period to allow focus on safety and quality.
The spokesperson also mentioned that the move demonstrates Toyoda’s intent to share information with suppliers early so they can schedule their operations accordingly. However, the production from April onwards will remain high despite the reduction as an original plan has already compensated for previous production losses.
Via Automotive News
