News - Toyota
Toyota global production revised down: report
Chip crunch impacts 9.3-million-unit fiscal year target, Oz supplies affected
20 Jan 2022
By MATT BROGAN
TOYOTA will reduce its global production target for the second time this fiscal year (to March 31) as the Japanese car maker falls foul of the ongoing microprocessor shortage, reports Automotive News, and Australian vehicle supplies may continue to be impacted.
In a statement issued this week, Toyota said it expects its companywide production figure to end below its 9.3-million-unit target for FY2021-22, its predicted output for the month of February to finish down 150,000 to approximately 700,000.
“Current demand is very strong; therefore, we were aiming for a high February production plan,” Toyota said in the statement.
“However, due to the impact of the continuing demand for semiconductors across all industries, we have adjusted our production plan.
“As a result of the revision, the full-year production forecast for the fiscal year ending March 31, 2022, is expected to be lower than the previous forecast of nine million units,” the statement concluded.
The statement did not detail any new production targets or outline when a new production target may be disclosed. It’s understood the microprocessor shortage affects 11 production lines at eight of Toyota’s 14 home market plants.
The slowdowns are expected to impact the supply of Toyota models including the Camry, C-HR, Prius and RAV4, and Lexus variants including the IS, LS, NX and UX.
Toyota Motor North America has also reported a downturn in vehicle production with local plants reporting a shortfall of approximately 25,000 to 35,000 vehicles due to “supply chain and COVID-related challenges”.
Despite the forecast – and associated slowing sales – the company posted a 48 per cent increase in operating profit over the second quarter (July-September) of the fiscal year, the company citing aggressive cost control policies and beneficial foreign exchange rates as the reason for the uptick.
Locally, Toyota said the production cutback would continue to play a part in slowing deliveries of some vehicles to Australian customers.
Long waiting lists for models including the RAV4 are already well documented, but a Toyota Australia spokesperson told GoAuto News that dealerships across the country are best placed to advise individual customers as to specific delivery times on a case-by-case basis.
“Toyota Australia continues to work closely with our global production tram to support our dealer and our customers. Together with our parent company, we are doing everything we can to get customers into their new Toyota vehicles as soon as possible,” the spokesperson said.
“We ask customers seeking an update on their individual order to please contact their local/preferred dealer, who is best placed to assist. We apologise to customers experiencing delays and sincerely thanks them for their patience.”
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