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]
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“Domestic production” meaning Japan, or the U.S.?
Toyota domestic, so Japan. Though I’ve heard rumblings they’re will be an announcement for North America next week.
Dealers will be adding 10k to 15k to the MSRP. Maybe Toyota will raise the MSRP.
Appliance buyers will be sad.
Yeah, no Toyota refrigerators.
Oh I worked for ‘yota, I assure you they are indeed boring appliances. Drove all of them many times over, the only one that I liked was the 4runner, so I bought one.
Less production -> less energy wasted -> less heat produced and less CO2 emitted.
Yup, they know how to play the game.
My car shopping finished successfully this week, where we stumbled across a lonely Santa Fe Limited sitting in the dealer’s lot. It had been unloaded that afternoon as a dealer trade, which they said they haven’t had in 6 months. Almost every other car in the lot was spoken for, even ones with the shipping tape on them.
We test drove the Santa Fe and bought it at MSRP. A nice bonus: we scored 0% financing for 48 months, a deal which will surely dry up soon. With today’s inflation, that’s real money saved.
Every other call, email, text, or dealer visit was a dry well. It’s the wild west out there. As for Toyota, cutting production will only make things worse.
Good for you. I never thought I would see the day that I would be glad to get a new vehicle for MSRP which I will be getting my Maverick at. Different times.
Nice deal!
Glad to hear that worked out.
But I have to say – I never though I’d hear the phrases “I bought a Hyundai for MSRP” and “good deal” in the same sentence. Goes to show just how f**ked up things are these days.
I spotted a 2019 ZR2 diesel on the local Stellantis lot. It had 90,000 km on it. The crooks wanted $57,000 CAD for it. I can buy a brand new one for that.
In related news, my brokerage account would like to announce that war is bad for business.
In town there is a Toyota store with Chrysler across the street. In 2020 and most of 2021 Toyota had cars, Chrysler had none. Now Chrysler has a lot full of rams and grand cherokees. Toyota has NOTHING, completely empty.
I bought my RAV4 back in August for $1200 below sticker in addition to the $750 rebate they still carried. Seems like 100 years ago
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.
Vaporware implies they do not actually exist, is this as such or is this a case of you cannot find any in your locale?