The world’s largest automaker, Toyota Motor Corporation is having a tumultuous 2022 due to multiple global production cuts.
The company announced yesterday that it has suspended operations on 11 lines at seven factories. The suspension will remain in effect up until August 2022 due to COVID-19-induced lockdowns in Shanghai, China.
The company has also reduced its global production target for May to 750,000 from an already reduced 800,000. The company refused to provide a yearly estimate for its lost production figures.
Toyota is one of the few automakers to slash production targets due to China’s COVID-19 lockdown. Tesla, SAIC, FAW Group, and Dong Feng Corp are among other major carmakers that have also halted production.
Earlier this year, Toyota had to cease production at 18 lines in Japan after a massive earthquake destroyed the facilities. The shutdown resulted in a loss of 20,000 units in output. During that time, chip shortage had also trimmed Toyota’s global production target.
The current lockdown in Shanghai has resulted in a production cut of approximately 40,000-50,000 units. These cuts are likely to have a huge combined impact on Toyota’s annual global sales figures.