Saturday, March 25, 2023
HomeBusinessToyota Extends Japan Production Stoppages

Toyota Extends Japan Production Stoppages

Toyota has warned that production halts at certain of its plants in Japan would be extended as the company continues to be impacted by supply chain concerns.

The world’s largest automaker claimed the Covid-19 epidemic has caused interruptions in its component facilities in Southeast Asia.

The delays will affect Land Cruiser and Lexus production.

According to the firm, the current halts would result in a loss of around 14,000 automobiles in December.

Toyota stated the stoppages were caused by “reduced attendance rate at suppliers in South East Asia owing to the re-spread of Covid-19 and tight logistical situation in Japan” in an email to the BBC.

“We would want to maintain 9 million units, but we will keep a careful watch on the situation,” the business said, adding that it hoped to meet its annual worldwide production target for the year ending on March 31.

Due to a computer chip shortfall, the Japanese carmaker cut its worldwide production target in August.

Toyota’s competitors, such as General Motors, Ford, Nissan, Daimler, BMW, and Renault, have also had to reduce output due to a lack of semiconductors.

In addition to the pandemic’s interruptions, one of the industry’s largest suppliers of computer chips experienced a severe fire at one of its plants in Japan, affecting automakers. Renesas warned in March that it might have a “significant impact” on its ability to fulfill orders.

The global supply chain issue affecting Japan’s auto sector is also affecting the country’s overall economy.

Japan’s exports increased by 9.4% in the year to October, snapping a seven-month string of double-digit growth.

It was the smallest expansion in eight months, and it fell short of expectations.

Car shipments were particularly heavily impacted, falling nearly 37% from the same period in 2020.

According to data from Japan’s Ministry of Finance, car shipments to the country’s two major trade partners, China and the United States, fell by about half.

Bob Carlson
Bob Carlson
Bob Carlson is a business journalist, with over a decade of experience in the trenches of reporting up-to-date business news for publications all over the world. With a wealth of knowledge at his back, Bob strives to bring the most important insights into the business world for TheOptic daily.
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