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Friday, March 18, 2022

Toyota Japan Production To Take "Intentional Pause" To Focus On Quality, Sustainability

Toyota is taking an “intentional pause” at its production facilities in order to achieve a more reasonable pace of output as the ongoing chip shortage and pandemic continues to limit parts and semiconductor supply. The pause is expected to run from April to June 2022.

In rolling out an “intentional pause,” Toyota is reviving the term President Akio Toyoda coined after his company’s 2010 global recall crisis, when Toyota slowed the rampant pace of growth to focus on sustainable operations. In recent years, Toyota has again been running in the red zone.

The world’s biggest carmaker will cut its global production by 150,000 units in April to 750,000 units (250,000 units in Japan, 500,000 units overseas). The production cuts will affect almost the entirety of the Lexus line-up—the LS, IS, RC, ES, RX, UX, and NX. It will also cause some downtime on the production of the Prius c, C-HR, Yaris, Yaris Cross, and Camry.

No word yet on which models will see production stoppages in May and June.

Toyota says they are doing this to establish a healthy workplace environment that places the highest priority on safety and quality, rather than exceeding the capacities of facilities, pushing people to their limits, and making do through overtime work.

Moreover, the semiconductor shortage, the spread of COVID-19, and other factors is making it difficult to look several months ahead. However, they will closely examine the situation surrounding parts supply to make every effort to reduce the scope of sudden production cuts as much as possible to normalize its production plan while also reducing the burden on suppliers.

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