Toyota Motor Corp. is cutting global production by 100,000 cars to tackle the ongoing chip shortage crisis in the auto sector. The company has brought down its production target to around 850,000 vehicles for June 2022, Reuters learned on Tuesday.
The company maintained its production estimate of 9.7 million units worldwide by March 2023, despite recent disturbances in several major production facilities in Japan.
Toyota also plans to suspend operations in one of its domestic factories due to COVID19-induced supply chain hiccups in Shanghai. The suspension will remain in effect for five days between May 28 and June 3, affecting 16 other lines at 10 factories up until June 30th.
The automaker will churn out an average of about 850,000 units per month from June till September. It said that chip shortage, COVID-19 spread, and other elements are creating challenges for Toyota and the automotive industry as a whole.
With frequent production pauses this year, Toyota’s place as the largest carmaker in the world might be up for grabs.
