Toyota Announces Longer Stoppages of Its Japan Production
Toyota has announced that it will extend its stoppages of its Japan productions. In a writing to the BBC, the automaker said that this decision was arrived at due to supply chain challenges that seem to be heightened because of recent increase in covid-19 cases and tightened logistics issues in Japan.
We now know that its two brands, Landcruiser and Lexus will be hit most by the delays. This will result in lost productions totaling up to 14,000 vehicles by December 2021.
However, the company maintains that it will strive to keep its annual production target of 9 million units by the end of this month ending 31st December 2021. This will be done while the company closely monitors the unraveling of events relating to the pandemic progress.
Toyota had slashed its production targets for this year in the month of august due to shortages of computer chips which are a significant component in most modern advanced vehicles.
Not only is Toyota hit with shortages in supplies but also its close competitors. Other automakers such as BMW, Renault, General Motors, Ford, Nissan among others have also been forced to cut back on their global production targets due to challenges in parts supplies.
Another impact for the automakers was caused by a fire outbreak in one of the industries biggest chip suppliers’ factories early in the year.
The crisis hitting the car exports in Japan has been said to be affecting its economy as a whole. For instance car exports to its two major markets in the USA and China dropped by almost half according to data from the nation’s ministry of finance indicating a major effect on its economy as a whole.
In the month of October, Japan hit the rocks on its double digit exports expansion that had been experienced in the last seven months to stand at 9.4% which was the lowest and lower than forecasts.
