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Wednesday, January 19, 2022

Toyota To Cut Global Production Anew; Land Cruiser 300 Unaffected This Time


Toyota Motor Corporation is now expecting to miss its global production target as the automaker is now feeling the effects of the global parts shortages and the pandemic.

The Japanese carmaker says it expects its global production to come in under the 9 million-vehicle target for its fiscal year ending March 31—a figure they have been confident of hitting since Q3 2021. It is the second time this fiscal year that Toyota had to readjust its global production figure.

In a statement, Toyota said the semiconductor shortage would force it to reduce worldwide output by 150,000 units in February to about 700,000 vehicles. About half of that number, 75,000, will affect production lines in Japan. That, in turn, will make it very difficult to reach the company’s 9 million target. Toyota did not say what the new production target would be or when it would be disclosed.

Toyota plans to suspend production on 11 lines in 8 plants, out of 28 lines in 14 plants throughout February. The stoppage, ranging from just two days to as much as a week will affect models such as the Toyota RAV4, GR Yaris, and the majority of Lexus models. For buyers currently in line for the Land Cruiser 300, they will be happy to know that Toyota is not expecting any production stoppage on their luxury SUV.

“With regards to the shortage of semiconductor-related parts, we will continue to examine the situation and consult with all companies involved in considering the use of substitutes where possible in anticipation of a continuing shortage,” Toyota said in the statement.

Toyota started the current fiscal year targeting 9.3 million vehicles in the 12 months ending March 31. And the company largely confounded the industry by boosting output and notching record profits despite the shortages in parts and microchips. However, by the middle of 2021, Toyota finally succumbed to the global slowdown and joined rivals in pulling back production.

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