In an effort to ease the pain of its supplier base, Toyota plans to reduce output at Japanese factories in the second quarter of this year.
A spokesperson told Reuters The automaker plans to cut output at its Japanese plants by 20 percent in April, 10 percent in May and 5 percent in June.
The production cuts are intended to ease the strain on suppliers.
Akio Toyoda, Toyota’s CEO, told union members that the April-June slowdown is “a period of deliberate cooling” for suppliers, who are at risk. suffers from “burnout” due to lack of chips and parts.
The spokesperson noted that production levels will remain high, as Toyota’s previous plan called for the company to produce 11 million cars in the 2022 financial year, which ends at the end of March 2022.
In 2021, Toyota has global sales crown sold 10.3 million cars, an increase of 10.2% compared to 2020 and ahead of the nearest competitor, the Volkswagen Group, by 1.7 million vehicles.
Toyota raised its 2022 output forecast to make up for lost output during the COVID-19 pandemic and the ensuing global semiconductor shortage.
While these problems have persisted for more than a year and continue to affect dog manufacturers of all stripes, the supply chain has been further disrupted by Russia’s invasion of Ukraine.
It is not clear if the production slowdown will affect Toyota’s output levels in 2022 or if the automaker plans to compensate by increasing its production rate in the second half of the year.
Earlier this month, Toyota had to suspend all vehicle production in the country for a day after a supplier server knocked offline due to computer virus.
Toyota isn’t the only automaker struggling to maintain output due to supply chain issues.
Honda recently said it would cut production by 10% at two Japanese factories until the end of March.
After notifying a Losses $2.5 billion ($3.5 billion) For the final quarter of 2021, Rivian revealed last week that supply chain issues could cut 2022 production in half to 25,000 vehicles.
Meanwhile, Russia’s invasion of Ukraine has severely affected the output of some European producers. Volkswagen has halted production at two of its EV plants in Germany, while Stellantis has scrapped plans to use a joint venture with Mitsubishi in Russia as a van production hub.