Toyota announced that it must cut its global production targets for the month of June for the second time this week. The causes put forward are well known; supply chain issues, as well as the lockdown measures imposed once once more in China due to coronavirus outbreaks.
The company also mentioned that its annual estimates might also be revised downwards.
The production of all manufacturers was affected by the shortage of electronic chips and by the containment measures taken in China, linked to Covid-19.
Toyota’s production cut announcement comes a day following data was released that showed car sales to individuals in China, Europe and the United States remained weak.
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In a Toyota factory in China
Specifically, Toyota said it expects to produce around 50,000 fewer vehicles in June, for a total of around 800,000, due to the Shanghai shutdown. On Tuesday, the Japanese giant had reduced its plan for the same month by 100,000 vehicles, citing the shortage of chips.
Toyota said it may cut its production plan to 9.7 million units for 2022.
“It is very difficult to estimate the current parts supply situation due to the ongoing shutdown in Shanghai,” the company said.
And if what happens in China has such a big impact, it’s because the country is both the largest auto market on the planet, as well as a global parts manufacturing giant. When regions close there, the domino effect does not take long to be felt.
Basically, even if it has a broad back, the pandemic is still directly affecting the industry.
Toyota said its models affected by the production suspension would be the Corolla, RAV4, Prius and 4Runner.
