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: All or nothing: Why circular business models require a holistic approach
    • 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
March 17, 2022 05:23 AM

Toyota slashes April production, takes 'intentional pause' from rampant growth

Toyota will slash April production by 150,000 units as it takes an 'intentional pause' from rampant growth.

Hans Greimel
Naoto Okamura
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print
    Toyota motomachi production web_0.jpg

    Toyota will cut its global production plan by 150,000 vehicles to 750,000 next month. Output at its Motomachi plant in Japan is pictured.

    TOKYO -- Toyota Motor Corp. will take the foot off the gas in its race to recoup lost production, slowing the pace of recovery from April to June to achieve a more “reasonable” pace of output as the ongoing semiconductor shortage and COVID-19 pandemic continue to crimp the industry.

    Toyota said it would slash its global production plan for April by 150,000 units to 750,000 vehicles, compared with the original schedule reported to suppliers earlier this year.

    From April through June, the company’s fiscal first quarter, Toyota said its global production would average about 800,000 vehicles a month. The new goals are down from the 900,000-plus levels Toyota had targeted in recent months as it tried to catch up on lost production.

    Related Article
    Toyota to cut production to ease strain on suppliers
    Renesas suspends semiconductor plants in Japan after earthquake

    “We have revised production plans to be more reasonable in line with recent realities,” Toyota said in a news release on Thursday, adding that April to June would constitute an “intentional pause.”

    “By doing this, we will establish healthy workplace environments that place 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,” Toyota, the world’s largest automaker, said.

    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.

    Even as it was buffeted by the pandemic and microchip bottleneck, Toyota still kept its retail sales forecast at 10.29 million vehicles for the current fiscal year ending March 31, including Daihatsu and Hino. That total would be up from 9.92 million units the previous fiscal year and just below the record 10.6 vehicles sold in the fiscal year ended March 2019.

    Now, it plans to dial down global output about 10 percent from its original plan in May and down about 5 percent from its plan in June, global procurement manager Kazunari Kumakura said  

    Next month, Toyota now plans to make 250,000 units in Japan and 500,000 units overseas.

    In April, Toyota plans suspension on seven lines at five plants, out of 28 lines in 14 plants.

    The slowdown will affect output of such models as the Toyota Camry, C-HR and Yaris, as well as Lexus nameplates including the NX, CT, UT, LS, ES, IS and RC.

    Toyota said that previous attempts at on-the-fly adjustments to production were unsustainable.

    “Up until now, we have conducted recovery production with tremendous efforts from the various relevant parties,” Toyota said. “However, due to the parts shortage, we have had to make repeated last-minute adjustments to production plans, and this has imposed considerable burdens on production sites including those of suppliers.”

    Going forward, Toyota will review production plans and risk factors on a monthly and three-month basis and share these plans with suppliers up to three months in advance.

    Toyota’s latest production plan does not account for the war in Ukraine or possibly supply chain disruptions from a March 16 earthquake that rattled northeastern Japan.

    But citing the uncertain environment, Toyota also held open the door to future downgrades.

    “In addition to the shortage of semiconductors, the spread of COVID-19 and other factors are making it difficult to look several months ahead,” Toyota warned, “and there is a possibility that the production plan may be lower.”

    DAILY NEWSLETTER: Sign up and get the top news of the day in Europe every business weekday.
    RECOMMENDED FOR YOU
    Toyota to increase Yaris capacity at French plant
    Recommended for You
    Toyota Yaris Cross
    Toyota to increase Yaris capacity at French plant
    Connected cars technology panel
    Stellantis sees new ways to generate profits from vehicle software
    VW logo in car mirror
    VW's rights may have been breached by Italian antitrust fine, EU court adviser says
    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: All or nothing: Why circular business models require a holistic approach
        • 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