Toyota Cuts FY Production Plans Hit By Parts Shortage

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Toyota Motor Corp. has trimmed its production targets for fiscal year ending March 31, 2022 following ongoing disruption in global production severely hurt by the parts shortage, mainly chips, resulting from the spread of COVID-19.

For the full year, the company now expects production to be lower than the previous forecast of 9 million units.

For the month of February 2022, global production plan is expected to be around 700,000 units. Toyota noted that current demand is very strong, and it was aiming for a high February production plan.

But, due to the impact of the continuing demand for semiconductors across all industries, the company adjusted its production plan by around 150,000 units globally.

In the month of February, operations will be suspended in 11 lines in 8 plants, out of 28 lines in 14 plants. The affected vehicles will include GR Yaris, Corolla, RAV4, Harrier, Prius, and Camry among many others.

The Japanese automaker in recent times has made repeated adjustments to its production plans following the shortage mainly of chips, which has also hurt other vehicle makers.

In its latest statement, Toyota said it will continue to check the situation regarding the shortage of semiconductor-related parts and will consult with all companies involved in considering the use of substitutes where possible in anticipation of a continuing shortage.

In the first half, Toyota's consolidated vehicle sales were at 4.94 million, which was 132.7 percent of consolidated vehicle sales for the first half of the previous fiscal year. Toyota and Lexus brand vehicle sales was at 4.852 million units.

In the month of December, U.S. sales fell 30.2 percent on a volume basis.

Meanwhile, Toyota dethroned its US counterpart General Motors in 2021 as America's top-selling automaker by selling 2.33 million vehicles in the U.S., an increase of 10.4 percent. In the year, GM sold 2.22 million vehicles in the U.S., down by 12.9 percent.

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