Toyota to cut quarterly production to ease pressure on beleaguered suppliers

Toyota’s logo is pictured at the 38th International Motor Show in Bangkok, Thailand March 28, 2017. REUTERS/Athit Perawongmetha/Files

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TOKYO, March 11 (Reuters) – Toyota Motor Corp (7203.T) will cut domestic production by up to 20% in the months of April, May and June, it said on Friday, to ease the pressure on suppliers struggling with shortages. chips and other parts.

The move by Japan’s largest automaker is the latest to shine a light on supply chain difficulties plaguing the global auto industry as the COVID-19 pandemic drags on. The outlook has been further complicated by the crisis in Ukraine.

Toyota plans to cut domestic production by about 20% in April, about 10% in May and about 5% in June from an earlier production plan, a spokesperson said. Production would remain high because the previous plan took into account the need to compensate for lost production, the spokesperson said.

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The automaker’s suppliers have been forced to deal with a number of changes to production plans due to chip shortages, and the production cut should ease some of the burden on them, the spokesman said, declining to comment on the number of cars involved or the financial situation. impact.

Toyota Chairman Akio Toyoda told union members this week that without a solid production plan, suppliers risked being “burned out” and that April to June would be “an intentional chill period”.

U.S. electric vehicle maker Rivian Automotive Inc (RIVN.O) said on Thursday that supply chain issues could halve its planned production this year, to 25,000 vehicles. Read more

Honda Motor Co Ltd (7267.T) said it would cut production by around 10% at two domestic plants until the end of this month.

Separately, Toyota suspended domestic production for a day earlier this month after a cyberattack on a supplier, a shutdown that prevented production of around 13,000 vehicles that day.

Toyota plans to produce a record 11 million cars in fiscal year 2022 as long as it can ensure a stable supply of chips.

Its shares fell 4.4% on Friday, underperforming a 2.1% drop from Tokyo’s benchmark Nikkei 225 average (.N225).

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Reporting by Satoshi Sugiyama; Editing by Robert Birsel, David Dolan

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