Due to Parts Supply Disruptions... Toyota to Cut Additional 400,000 Units in September-October

[Image source=Yonhap News]

[Asia Economy Reporter Ki Ha-young] Toyota Motor Corporation will implement an additional production cut of about 400,000 units in September and October this year. This is due to the inability to properly receive parts from Southeast Asia, where COVID-19 is spreading.

On the 10th, Toyota announced that it had finalized plans for an additional production cut totaling 400,000 units, including 70,000 units this month and 330,000 units next month. Previously, Toyota decided to cut about 360,000 units this month due to semiconductor parts shortages and the spread of COVID-19 in Southeast Asia, where parts factories are located. Based on global production in October, this will reduce the originally planned volume (880,000 units) by about 40%.

Reflecting this production adjustment, Toyota lowered its domestic and overseas production forecast for this year from 9.3 million units to around 9 million units. However, considering other variable factors such as exchange rates, it maintained its consolidated operating profit forecast for fiscal year 2021 (April 2021 to March 2022) at 2.5 trillion yen (approximately 27 trillion won).

Toyota stated, "We will promote alternative production at factories in other regions to minimize the volume of production cuts as much as possible."

This content was produced with the assistance of AI translation services.