Skip to main content
Sister Publication Links
  • Automotive News
  • Automobilwoche
  • Automotive News Canada
  • Automotive News China
Subscribe
  • Subscribe
  • Newsletters
  • Login
  • HOME
    • Latest news
    • Automakers
    • Suppliers
    • New Product
    • Environment/Emissions
    • Sales By Market
    • On The Move
    • Auto Shows
    • Munich Auto Show
    • Geneva Auto Show
    • Paris Auto Show
    • Beijing Auto Show
    • Shanghai Auto Show
  • Features
    • Long Read
    • Interview of the Month
    • Focus on Electrification
    • Focus on Technology
    • Segment Analysis
    • Cars & Concepts
    • Supplier Spotlight
    • Europe By The Numbers
  • Opinion
    • Blogs
    • Commentary
    • Guest columnists
  • Photos
    • Photo Galleries
    • Geneva Photo Gallery
    • Beijing Photo Gallery
    • Frankfurt Photo Gallery
    • Paris Photo Gallery
    • Shanghai Photo Gallery
  • Podcasts
  • Car Cutaways
  • EVENTS
    • ANE Congress
    • ANE Rising Stars
    • ANE Eurostars
  • More
    • Publishing Partners
    • Social Media
    • Contact Us
    • Media Kit
    • About Us
    • Capgemini: Invent Head on automotive takeaways from CES 2023
    • Capgemini: Securing the industry's future through a radical rethink
    • Capgemini: Succeeding with the automated driving journey through AI
    • Capgemini: The circular economy is spurring new thinking on EV batteries
    • Capgemini: Toyota and Capgemini leaders on how OEMs can handle industry changes and succeed
    • HEXAGON: Plugging into data is the only way to make winning EVs
    • TUV Rheinland: Ideas, services and certifications for smart mobility
    • TUV Rheinland: Testing of automated and autonomous vehicles on test tracks
    • Toyota Europe
    • UFI Filters
    • Facebook
    • Instagram
    • LinkedIn
    • Twitter
MENU
Breadcrumb
  1. Home
  2. Automakers
September 10, 2021 04:09 AM

Toyota cuts output again on shortage of chips, parts

Semiconductors, wire harnesses are in short supply because of bottlenecks in southeast Asia

Hans Greimel
Naoto Okamura
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print
    Production at Toyota's Motomachi plant in Japan.

    Production at Toyota's Motomachi plant in Japan.

    TOKYO -- Toyota willl slash global production again next month -- by 330,000 units -- as the pandemic and global shortage of automotive microchips continue to bite.

    The total hit represents a 40 percent cutback from Toyota's original October production plan.

    In announcing the reversal on Friday, Toyota said it will also take a bigger hit than expected in September. Toyota expects to lose another 70,000 units this month.

    That adjustment comes on top of an August announcement, when Toyota warned it would lose 360,000 vehicles of output globally in September, including some 80,000 units in North America.

    Unlike in last month's announcement, when Toyota kept its fiscal year global production target unchanged, Toyota said this time that it would lower its target to 9 million units for the fiscal year ending March 31, 2022. It had earlier planned to manufacture 9.3 million vehicles worldwide.

    That total covers output only from Toyota and Lexus, not Daihatsu or Hino.

    In October, Toyota said it would lose a total of 330,000 vehicles from its original plan of making 880,000 globally. Some 180,000 units will be lost at overseas factories, while Toyota's domestic plants in Japan churn out 150,000 fewer for the month.

    Toyota's global procurement manager, Kazunari Kumakura, declined to give a regional breakdown for the overseas impact.

    Kumakura blamed the slowdown on supply chain bottlenecks triggered by lingering lockdowns in southeast Asia, where factories are suspending operations amid continued outbreaks of COVID-19. He said the impact in Malaysia was the worst, but also cited Vietnam as a trouble spot.

    A range of parts, including semiconductors and wire harnesses, are in short supply.

    Kumakura said it was still too early to give an outlook for recovery.

    "Operations are slowly recovering but it will still take time to produce finished parts," Kumakura said. "We can't say definitely when we will be able to see a rebound."

    In a statement, Toyota seemed to suggest business could normalize somewhat from November.

    "Although the outlook for November and beyond is unclear, current demand remains very strong. As a result, the production plan for November and beyond assumes that the previous plan will be maintained," it said, cautioning that things are still in flux. "We are continuing to assess expected production in October, and we will announce additional details in mid-September."

    Despite the dented production plan, CFO Kenta Kon said Toyota would keep its operating profit forecast unchanged for the current fiscal year. Toyota should be able to stabilize profits, despite making fewer cars, because of cost controls and a beneficial foreign exchange rate, he said.

    Toyota had largely confounded the industry by ramping up output and notching record profits despite the pandemic-microchip double whammy.

    In the company's fiscal first quarter ended June 30, the automaker reported all-time high quarterly operating profit as well as record fiscal first-quarter results for net income, revenue and global retail sales. But it surprised last month by warning of big production reductions for September in virtually every major market.

    Related Article
    COVID-19 impact could hit Japanese automakers' output in October
    RECOMMENDED FOR YOU
    Renault, Nissan will present alliance redesign on Feb. 6
    Recommended for You
    renault nissan web2.jpg
    Renault, Nissan will present alliance redesign on Feb. 6
    6DEFENDER-MAIN_i.jpg
    Jaguar Land Rover adds third Defender shift to meet high demand
    Fearri Purosangue
    Ferrari expects 'even stronger' 2023 with more new models
    Capgemini Invent Head on automotive takeaways from CES 2023
    Sponsored Content: Capgemini Invent Head on automotive takeaways from CES 2023
    Sign up for free newsletters
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    Get Free Newsletters

    Sign up and get the best of Automotive News Europe delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    SUBSCRIBE TODAY

    Get 24/7 access to in-depth, authoritative coverage of the auto industry from a global team of reporters and editors covering the news that’s vital to your business.

    SUBSCRIBE NOW
    Connect with Us
    • Twitter
    • Facebook
    • LinkedIn
    • Instagram

    Founded in 1996, Automotive News Europe is the preferred information source for decision-makers and opinion leaders operating in Europe.

    Contact Us

    1155 Gratiot Avenue
    Detroit MI  48207-2997
    Tel: +1 877-812-1584

    Email Us

    ISSN 2643-6590 (print)
    ISSN 2643-6604 (online)

     

    Resources
    • About us
    • Contact Us
    • Advertise with us
    • Advertise with Us
    • Ad Choices Ad Choices
    • Sitemap
    Awards
    • Rising Stars
    • Eurostars
    • Leading Women
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Automotive News Europe
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • HOME
      • Latest news
      • Automakers
      • Suppliers
      • New Product
      • Environment/Emissions
      • Sales By Market
      • On The Move
      • Auto Shows
        • Munich Auto Show
        • Geneva Auto Show
        • Paris Auto Show
        • Beijing Auto Show
        • Shanghai Auto Show
    • Features
      • Long Read
      • Interview of the Month
      • Focus on Electrification
      • Focus on Technology
      • Segment Analysis
      • Cars & Concepts
      • Supplier Spotlight
      • Europe By The Numbers
    • Opinion
      • Blogs
      • Commentary
      • Guest columnists
    • Photos
      • Photo Galleries
      • Geneva Photo Gallery
      • Beijing Photo Gallery
      • Frankfurt Photo Gallery
      • Paris Photo Gallery
      • Shanghai Photo Gallery
    • Podcasts
    • Car Cutaways
    • EVENTS
      • ANE Congress
      • ANE Rising Stars
      • ANE Eurostars
    • More
      • Publishing Partners
        • Capgemini: Invent Head on automotive takeaways from CES 2023
        • Capgemini: Securing the industry's future through a radical rethink
        • Capgemini: Succeeding with the automated driving journey through AI
        • Capgemini: The circular economy is spurring new thinking on EV batteries
        • Capgemini: Toyota and Capgemini leaders on how OEMs can handle industry changes and succeed
        • HEXAGON: Plugging into data is the only way to make winning EVs
        • TUV Rheinland: Ideas, services and certifications for smart mobility
        • TUV Rheinland: Testing of automated and autonomous vehicles on test tracks
        • Toyota Europe
        • UFI Filters
      • Social Media
        • Facebook
        • Instagram
        • LinkedIn
        • Twitter
      • Contact Us
      • Media Kit
      • About Us