Toyota Cutting Production By 20 Percent Next Month
Earlier this week, we covered Toyota stressing over the feasibility of its current production plans. Automakers around the world are presently trying to suss out how to maintain solid profitability with diminished output, with Japan’s largest manufacturer suggesting the present state of the world might force it to do likewise.
While we assumed the resulting decisions would take a couple of weeks for Toyota to finalize, as it considered its many options, the company announced on Friday that it would need to cut domestic production by 20 percent for the month of April. The automaker framed this as part of its preexisting “recovery plan” necessary to account for supply chain issues that never seem to end, saying that diminished output would gradually normalize in Japan over the spring.
Corporate spokeswoman Shiori Hashimoto explained that the company had originally planned on raising production targets through the spring to make up for losses incurred by COVID restrictions and part shortages. But hardships have continued for suppliers, making it unrealistic to pursue those goals. So they’re being tamped back by 20 percent for April, 10 percent for May, and 5 percent for June.
Hashimoto suggested that this would still represent a high level of production for Toyota since the cutbacks have been incorporated into the elevated targets. But those goals were already supposed to help make up for production volumes lost over the last two years. Like most other manufacturers, Toyota has been telling customers they might have to wait months for certain models to arrive.
“We will continue to do our best to deliver vehicles to our customers as soon as possible,” Hashimoto said, adding that these reductions were simply estimates and would be subject to change.
[Image: NeydtStock/Shutterstock]
Consumer advocate tracking industry trends and regulations. Before joining TTAC, Matt spent a decade working for marketing and research firms based in NYC. Clients included several of the world’s largest automakers, global tire brands, and aftermarket part suppliers. Dissatisfied, he pivoted to writing about cars. Since then, he has become an ardent supporter of the right-to-repair movement, been interviewed about the automotive sector by national broadcasts, participated in a few amateur rallying events, and driven more rental cars than anyone ever should. Handy with a wrench, Matt grew up surrounded by Detroit auto workers and learned to drive by twelve. A contrarian, Matt claims to prefer understeer and motorcycles.
More by Matt Posky
Comments
Join the conversation
The good news is that automakers no longer have to lease acres and acres of parking lots and open fields to store their unsold vehicles. Times do change!
Looks like, for us Washingtonians, the RAV4 Prime and NX450h+ will continue to be vaporware.