Toyota Motor decided to cut its production outlook for the current fiscal year by 300,000 vehicles to nine million units due to COVID-19 after-effects and shortages of certain parts, the company announced Friday
MOSCOW (Pakistan Point News / Sputnik - 10th September, 2021) Toyota Motor decided to cut its production outlook for the current fiscal year by 300,000 vehicles to nine million units due to COVID-19 after-effects and shortages of certain parts, the company announced Friday.
"Regarding the full-year production forecast for the fiscal year ending March 31, 2022, we are adjusting the expected volume to 9 million units due to the impact of the production cut, down from the 9.3 million units forecast," Toyota said in a statement.
The decision to adjust production volume was prompted by a shortage of certain parts caused by the spread of COVID-19 in Southeast Asia, the company explained.
"Key reasons for the production adjustment include a decline in operations at several local suppliers due to the prolonged spread of COVID-19 in Southeast Asia and the impact of tighter semiconductor supplies," the car manufacturer noted.
At the same time, the company does not expect any changes to its full-year operating income, which is expected to reach 2.5 trillion Yen ($22.7 billion).
On August 19, Toyota announced a coming 40% global vehicle production cut in September over microchip shortages, which constrain chip supply to automakers. This decision followed a previous suspension of several of the manufacturer's production lines in Japan due to the same issue.
The global automotive industry slashed production due to a shortage of semiconductors, which are critical to the production of a variety of electronic devices. The crunch stems from the spread of COVID-19 in Southeast Asia, a key microchip production hub.
