By on May 27, 2022

The automotive industry has basically resigned itself to running with lessened production for the foreseeable future. A significant number of automakers have suggested that it might be more lucrative to scale back output, reduce overhead, and focus on achieving broader margins per car during this prolonged period of economic and logistical duress. However, Toyota started the year saying it would do its utmost to raise production output as a way to make up for losses incurred during the pandemic. The company even said it anticipated things to gradually normalize through the spring.

Unfortunately, things have not gone according to plan. By March, the Japanese automaker had lowered its output goal for the fiscal year by 500,000 global units. Another 20 percent was lopped off for the month of April and leadership began expressing concerns that those preexisting goals might be totally untenable. While there were moments with the target actually rose, Toyota has repeatedly been forced to walk those claims back as the realities of the market dashed its dreams. Now, the company is once again cutting planned output for the month of June over supply chain issues with China. 

Toyota recently stated that it expected next month’s output to be about 100,000 units shy of its original target and has just added another 50,000 impossible-to-build vehicles to that list. The company said that would leave it with about 800,000 cars for the entire month. According to Reuters, Toyota blamed the incredibly strict COVID-19 lockdowns that are currently taking place in and around Shanghai.

From Reuters:

Japan’s largest automaker said it still expects to produce 9.7 million vehicles worldwide in the current financial year, though there is a “possibility” of a lower estimate.

The company said it would suspend operations at some of its domestic plants for the week of June 6.

The reduced estimate by Toyota – widely viewed as a bellwether for Japan Inc — is the latest evidence of how China’s pandemic lockdown has added to uncertainty for automakers and other manufacturers already grappling with a shortage of microchips.

Ongoing Chinese lockdowns are creating serious problems for the global supply chain and are accompanied by chip shortages and a slew of other factors that are making it exceptionally difficult to produce goods in a state of normalcy. Many automakers had hoped that things would have stabilized by the summer. But the current prognosis offered by industry analysts, the media, and industry leadership has problems persisting for all automakers into 2023.

[Image: Andrii Medvediuk/Shutterstock]

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28 Comments on “Chinese Lockdowns Force Toyota to Cut Production Again...”


  • avatar
    Skippity

    I hope it doesn’t result in less floating Toyota ads on this site.

  • avatar

    not a manufacturing crisis, rather manufactured.

    • 0 avatar
      Luke42

      Doesn’t matter if it’s a.manufactured crisis or not. [Shrug]

      As customer of the Asian CM industry, my colleagues are working together with our suppliers to make sure we both have things to sell.

      Our Asian CMs make money when we make money. We’re all the Ferengi, seeking to enrich ourselves through the pursuit of profit. And we have to deal with whatever’s happening in the world, no matter who’s fault it is.

      [Shrug]

  • avatar
    EBFlex

    With the overwhelming evidence that lockdowns (and masks, and even rushed, emergency use vaccines) don’t work, you really have to wonder what the plan is. What is the motive? It certainly not about stopping a cold or public health (it’s never been about that but with every passing day it becomes more evident).

    There are dark forces at work.

    • 0 avatar
      tonycd

      “With the overwhelming evidence that lockdowns (and masks, and even rushed, emergency use vaccines) don’t work, you really have to wonder what the plan is. What is the motive? It certainly not about stopping a cold or public health (it’s never been about that but with every passing day it becomes more evident). There are dark forces at work.”

      I don’t blame you for having some facts straight and some not, because the government has consistently misinformed us under both Presidents. But facts are important, so here goes:

      •This is NOT “a cold.” It’s related to cold viruses but much fiercer. It gets transmitted the same way as a cold, but then migrates from the lungs and invades as a full-body blood vessel disease that takes up long-term residency in over half of patients, even “mild” ones, and can eventually damage the immune system, the circulatory system and the brain.

      •You’re right that vaccines were rushed with inadequate safety testing, and they are becoming less and less effective as the virus mutates. Injectable vaccines were never meant primarily to stop transmission in the first place, but mostly just to reduce full-body disease in infected people. Claims to the contrary were BS to make us feel good about working, shopping and about whoever was/is in power at the time.

      •But since this disease is passed through the air like a cold, good-fitting N95 masks DO work. Very well. So do avoiding indoor crowds, #13 or #14 HEPA filters in rooms if crowds can’t be avoided, and ventilation of outside air through indoor spaces. Do yourself a favor and look up “Corsi box.” It could save your life.

      Best to you, and be careful out there. I agree about the dark forces. We’ve all been left on our own.

      • 0 avatar
        EBFlex

        I’ll give you that it effects the elderly far more severely than other age groups, but most age groups have cold symptoms and nothing more.

        “ Injectable vaccines were never meant primarily to stop transmission in the first place, ”

        Unfortunately thats how it was sold to us. Both the government and the sycophant media also stated that. “The virus stops with every vaccinated person”. They never sold it as a “symptom reducer. Only once they realized that the vaccine does not stop the virus did the goalposts move yet again.

        Respectfully, only N95s work. But the masks that are mandated do not. The blue surgical masks don’t work and the cloth masks don’t work. It’s interesting that after states implemented mask mandates, cases went up. That’s not evidence that they work.

      • 0 avatar
        thornmark

        dementia joe said the vaccines prevented people from getting covid and he and his regime said it over and over again

        https:

        //youtu.be/IHLXLTXTAJc?t=155

        • 0 avatar
          EBFlex

          He also just said the quiet part out loud about the high gas prices.

          He is doing nothing about it and that’s on purpose. He’s said that this is the cost of transitioning to the (non) green forms of transportation. So, as I said a while ago, they love gas prices being this high and will do nothing to bring them down. The more people suffer with the high prices directly resulting from his policies, the more people will become reliant on the government.

          The libs have made making a modest living and surviving on that untenable for a lot of people. And then they come in acting like heros to help these people with endless social programs.

          Libs create problems and then once people suffer, they swoop in with “solutions” which only amount to sucking on the government teat.

          • 0 avatar
            dal20402

            Masks are not on/off switches. (Well, N95s, properly worn, almost are.)

            Effectiveness of surgical and cloth masks depends on both the viral load of an infected person and the amount of time that the people spend in close contact. Cloth is not going to protect you against a seriously infectious environment but does reduce the risk that a momentary interaction will result in infection. Surgical further reduces the probability of infection. Enough to be worth it? That’s up to you, especially post-vaccine. But claiming the masks “don’t work” is misinformation.

          • 0 avatar
            EBFlex

            “But claiming the masks “don’t work” is misinformation.”

            The fact cases went up after mask mandates says otherwise. But I know you won’t let facts get in the way of ideology.

          • 0 avatar
            dal20402

            Obviously there was not a single other confounding factor. Increased willingness to go out with masks, restaurants and stores opening up again, a more transmissible strain of the virus: all figments of our collective imagination. The ONLY difference was whether people were masked or not.

          • 0 avatar
            EBFlex

            “ Increased willingness to go out with masks, restaurants and stores opening up again, a more transmissible strain of the virus: all figments of our collective imagination”

            Hate to break it to you but those were real, not a figment of your imagination.

            What else is real is the fact we were told that masks stop transmission. And the vaccine stops the virus. Both false. But that’s what they told us and that was completely false.

    • 0 avatar
      kjhkjlhkjhkljh kljhjkhjklhkjh

      Yep,
      Election was stolen
      arizona was brain washed
      Georgia was brainwashed
      Vaccine is 5g microchips
      Vaccine is mind control
      Vaccine is water for profit
      Vaccine causes balls to explode
      chemtrails are real
      moon landing was fake
      lizard people live in area51
      people drink babies blood
      1 million children go missing every day
      drinking pee helps corona
      taking horsepills work to fight corona
      books make people gay
      movies make people gay
      music makes people gay
      back the blue! (except when killing cops on January 6th)
      back the blue! (until they let 19 kids die, then we attack them again like jan 6th!)
      9/11 was US pilots with already dead passengers!

      … did i miss any other crazy red-state theories ? lol.

  • avatar
    ToolGuy

    Two questions:

    a) If I can purchase a pony for a thousand bucks and ride it starting 48 months from now, how much will it cost to feed it between now and then?

    b) If I want to become Amish, do I have to move to Ohio?

    Thanks in advance. (I have some buggy questions but they can wait.)

    • 0 avatar
      EBFlex

      2). Nah. There is a large Amish population off of Highway 29 in central Wisconsin (west of Wausau).

    • 0 avatar
      bullnuke

      ToolGuy – figure 2/3 of a bale of hay per day @ $7.50/bale (price depends upon where you live). Trimming and shoes every 8 weeks or so (around $120 per service). Vet bills (around $200 or so annually). Calculate…calculate…$7,227 in hay plus $3,120 for trimming/shoes plus $800 for the vet = $11,147 for your pony. Having a 2 acre field of grass will reduce you hay cost for 5 to 6 months a year if you graze it. In Ohio you must decide if you are going to be “Old Order” Amish or “Soft-Seat” Amish. That determines if you will forego the orange Triangle of Death and red lantern without a seat cushion or not.

    • 0 avatar
      SnarkIsMyDefault

      If things go south you can eat the pony…

  • avatar
    Greg Hamilton

    Nothing is hidden. It’s all part of the plan.
    https://intelligence.weforum.org/topics/a1G0X000006O6EHUA0?tab=publications
    Just click on the Supply Chains link.

  • avatar
    thornmark

    and people that have to get a new car are reduced to shopping Nissan

  • avatar
    Dimwit

    All the manufacturers are raising the transaction prices. I will wager this is so they can cut China out of the supply chain without hitting the bottom line too bad. Cheap is useless if it’s unavailable. They have cut their own throats to save face on COVID. It looks good on them.

  • avatar
    Jeff S

    I wouldn’t be that upset if there were less Chinese sourced parts but I don’t think it will last and as for the Chinese they will eventually be selling their vehicles in the US. The Chinese will probably be marketing less expensive EVs in a few years.

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