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Toyota cuts July global production plan by 50,000 vehicles
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TOKYO (Reuters) -Toyota Motor Corp on Wednesday cut its July global production plan by 50,000 vehicles as semiconductor shortages and COVID-19 parts supply disruptions continued to curb output.
TOKYO (Reuters) -Toyota Motor Corp on Wednesday cut its July global production plan by 50,000 vehicles as semiconductor shortages and COVID-19 parts supply disruptions continued to curb output.
The world’s largest car maker by volume expects to make 800,000 vehicles next month, it said in a statement.
“As it remains difficult to look ahead due to the shortage of semiconductors and the spread of COVID-19, there is a possibility that the production plan may be lower,” the Japanese company said.
Toyota and other car makers continue to struggle with supply-chain disruptions and component shortages caused by the COVID-19 pandemic including those resulting from recent lockdowns in China.
Automakers are also having to compete for limited semiconductor supplies with other manufacturers such as consumer electronics device makers.
Toyota stuck with its annual global production target of 9.7 million vehicles, although the company signalled in May that supply chain disruptions could eventually force it lower that number.
The automaker on Wednesday also expanded production halts in Japan next month at plants that make vehicles, including its GR Yaris subcompact and bZ4X electric SUV.
(Reporting by Tim Kelly; Editing by Louise Heavens and Muralikumar Anantharaman)
Supply chain disruption refers to any event that interrupts the normal flow of goods and materials in a supply chain. This can be caused by natural disasters, pandemics, or other unforeseen events.
Production planning is the process of organizing and scheduling manufacturing activities to ensure that products are produced efficiently and meet demand.
An annual production target is a goal set by a company for the amount of product it aims to produce within a year. It helps in planning resources and managing production capacity.
COVID-19 has caused significant disruptions across various industries, leading to supply chain challenges, reduced production capacity, and changes in consumer demand.
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