Toyota forced to delay production
Toyota Motor Corporation’s Motomachi Plant will close down every Friday. Photo: Toyota
Toyota has announced that it will reduce its worldwide production levels by 40 percent in September as a result of the semiconductor chip shortage.
According to reports, the Japanese company intends to build 540,000 vehicles next month, down on its target of 900,000, with plants such as Motomachi closing down every Friday during August and September.
In a statement, Toyota says parts shortage is also “resulting from the spread of COVID-19 in Southeast Asia. This is in addition to the adjustment of domestic production operations in August 2021 announced on July 22 and July 27”.
“We sincerely apologize for the inconvenience caused to our customers and suppliers due to these changes,” the company said.
In all, 27 of its 28 production lines across 14 factories in Japan will be affected, with plants in the US, Europe, and Asia also facing disruption. However, Toyota has confirmed to Autocar UK that its UK facilities in Burnaston and Deeside "are currently operating as planned" and shouldn't be affected.
Toyota had fared better than most of its rivals until now thanks to a large stockpile of semiconductor chips, kept as a result of a company policy adopted in the aftermath of the Fukushima earthquake and tsunami in 2011, says Autocar UK.
