Toyota’s plans are upside down: what decision did the carmaker make?

Toyota will reduce domestic production again as a shortage of semiconductors continues to hamper production plans.

Toyota Motor will make further production cuts in March due to a shortage of semiconductor chips, a few days after the carmaker reduced its domestic production target by up to 20% for the April-June quarter.

Toyota has said it will suspend production on one line at a factory for eight business days from March 22 until the end of the month. This is in addition to the suspension of domestic production at two factories announced last month.

The production of about 14,000 Noah and Voxy minivans would be affected by the latest suspension, a Toyota spokesman said.

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Last week, Toyota said it would lower production for three months starting in April to ease pressure on suppliers facing shortages of chips and other parts.

The news comes after Toyota announced on Monday that it would stop production at its plant in a joint venture with FAW Group in Changchun, China, due to new restrictions on COVID-19.

The problems continue for the Japanese

Despite the cuts, Toyota will maintain its production target of 8.5 million vehicles for the year, the spokesman said.

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A global shortage of chips has affected companies, from smartphone makers to consumer electronics companies and carmakers, forcing companies, including Toyota, to repeatedly cut production.

The Volkswagen Group announced on Tuesday that it had sold 2 million fewer cars than planned last year due to the chip crisis and warned that blockages in supply, high commodity prices and the Russia-Ukraine conflict could affect growth in 2022.

COVID-19 and semiconductor cuts are taking place as Toyota, Volkswagen and other carmakers shut down production at their Russian factories due to supply chain disruptions after the country invaded Ukraine.

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