Toyota cuts global production again as semiconductor shortages, supply chain disruptions linger
Toyota said it expects its production forecast for the fiscal year to remain unchanged
Fox News contributor Dr. Marc Siegel responds to Shanghai, China's COVID shutdowns and the latest buzz surrounding Monkeypox.
Toyota is cutting its global production plan next month by some 50,000 vehicles as semiconductor shortages and COVID-induced supply chain disruptions linger.
The Japanese automaker said its plan for July was originally expected to be 800,000 units – 250,000 in Japan and 550,000 overseas.
The Toyota logo is seen at its booth during a media day for the Auto Shanghai show in Shanghai, China April 19, 2021. (REUTERS/Aly Song/File Photo / Reuters Photos)
Toyota said it would extend the period of operations suspension at some of its plants and production lines because of the continued impact of the COVID-19 outbreak.
"As it remains difficult to look ahead due to the shortage of semiconductors and the spread of COVID-19, there is the possibility that the production plan be lower," Toyota said in a statement. "However, we will examine the parts supply closely to minimize sudden decreases in production, and continue to make every effort possible to deliver as many vehicles to our customers at the earliest date."
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The company said it expects global production volume for July through September to average about 850,000 units per month. The production forecast for the fiscal year, meanwhile, remains unchanged at approximately 9.7 million units.
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Semiconductor chip shortage and supply chain issues have weighed heavily on the auto industry. Matters have only been compounded by the COVID-19 lockdown in Shanghai. Toyota previously downgraded its global production plan for June, blaming the lockdown in Shanghai.