Toyota cuts production plan again on ongoing chip shortage

TOKYO – Toyota Motor Corp. is feeling the bite of the semiconductor crunch again.

Despite efforts to ramp up output over the summer, the world’s biggest automaker said persistent supply chain troubles will force it to cut its global production plan in coming months..

The automaker, struggling to recoup lost volume, said just last month that it wanted to manufacture 900,000 vehicles a month from September to November. 

But now, it sees output at 850,000 in September and only 800,000 in October, meaning that it would have to stretch to some 1.05 million vehicles in November to attain its previous target.

Instead, the company’s downward revision forecasts output to average 850,000 from October through December. Given the October outlook of 800,000 units, the new pace equates to an average of just 875,000 units for November and December.

Despite the setback, Toyota said in its warning Thursday that it was sticking to its plan to produce out 9.7 million Toyota and Lexus brand vehicles in the current fiscal year ending in March.

In the home market of Japan, the slowdowns will affect production on 10 lines at seven plants, out of 28 lines across 14 plants. The Toyota RAV4, Camry, Crown and GR Yaris are among the vehicles impacted.

Suspensions will also dent output of Lexus vehicles including the LC, IS, RC, ES and CT cars as well as the UX, NX and RX crossovers and the GX SUV.

Toyota is racing to jump-start production amid supply chain upheaval and COVID-19 closures.

In the first six months of 2022, Toyota's global consolidated output, including the Daihatsu minicar and Hino truck subsidiaries, was down 3.8 percent from the year before to 5.1 million vehicles.

Production of just Toyota and Lexus vehicles was down 3.5 percent to 4.4 million, meaning the company was off pace from its 9.7 million target.

In July, the latest month for which figures are available, Toyota’s consolidated output fell 6.9 percent to 835,192 vehicles.

Production in Japan was down 25 percent, while overseas operations were up 7.7 percent.