Toyota said 27 assembly lines in Japan will be impacted, affecting production of models including the RAV4, Corolla, Prius, Camry and Lexus RX. The news — first reported by Nikkei — took the market by surprise, with investors sending Toyota shares down 4.4 percent, their biggest daily drop since December 2018.
“Especially in Southeast Asia, the spread of COVID and lockdowns are impacting our local suppliers,” Kazunari Kumakura, the chief officer of Toyota’s purchasing group, said Thursday. Going forward, the company will look at ways to further diversify its supply chains to not focus on one region and is attempting to find replacement parts from suppliers in other regions.
Production cuts had been factored into previous forecasts, so Toyota is maintaining its plan to produce 9.3 million vehicles for the fiscal year ending in March. The company maintained its annual operating profit projection earlier this month at 2.5 trillion yen ($22.7 billion) for the fiscal year through March, below analysts’ average projection for 2.95 trillion yen.
Early on in the chip shortage that began late last year, Toyota was lauded for its supply-chain savvy. The company has an intricate system in place to monitor its vast network of suppliers and has an early warning system for shortages.
That may be no match for a pandemic that’s confounding scientists, governments and public health officials, sparking fresh lockdowns around the world and wreaking more havoc on a vast array of industries.
BMW recently warned of uncertain months ahead as the global chip shortage worsens. After saying early this year it had ordered enough semiconductors and expected its suppliers to deliver, the luxury-car maker now expects production restrictions in the second half.
Volkswagen also has flagged worsening supply woes, while Daimler dialed back its delivery expectations due to the shortage.
For all the latest Automobile News Click Here
For the latest news and updates, follow us on Google News.
