The global semiconductor shortage continues to cut production for car companies like Toyota.
The global semiconductor shortage is expected to last for several more months, so Toyota Motor anticipates production will remain below planned levels for the rest of the fiscal year.
The company has been making repeated adjustments to its production plans since August. Besides the shortage of parts, the disruption to daily work life at factories due to COVID-19 infections continues to slow production down significantly.
In November 2021, Toyota thought they’d be able to produce 1,000,000 vehicles globally to make up for the reduced production over the last few months. However, it looks like that figure will be closer to 850,000. The adjustment will affect 50,000 units in Japan and between 50,000 and 100,000 units overseas.
It’s not all doom and gloom though. The reopening of economies in South East Asia, including Malaysia, means that total production for their fiscal year will still hit approximately 9 million cars.
Here’s the press statement from Toyota explaining the situation in more detail.
PRESS RELEASE
At Toyota, we have made repeated adjustments to our production plans since August due to a shortage of parts resulting from the spread of COVID-19, causing various inconveniences to all parties concerned. We would like to express our gratitude to all parties concerned for their immense support in helping us maintain production.
Our production plans for November are outlined below.
Actual production has remained below planned levels since August. However, with the cooperation of our suppliers, we have been thoroughly examining each and every case of possible parts shortage in the supply chain. As a result, global production volume in November is expected to reach 850,000 to 900,000 units. (Reference: Global production volumes were approximately 830,000 units in November 2020 and approximately 500,000 to 600,000 units each in September and October 2021)
Aiming to make up for previous production shortfalls, we had initially planned to produce approximately 1 million units, which is a higher production level. However, since we are still experiencing a shortage of some parts and will be unable to make up for previous production shortfalls, we have adjusted our initial production plans for November. This adjustment will affect approximately 50,000 units in Japan, and between 50,000 units and 100,000 units overseas; the total number of units affected globally will be between approximately 100,000 units and 150,000 units.
In response to the continuing shortage of some parts, we will continue our efforts to strengthen our supply chain. We will implement thorough anti-COVID-19 measures both at our own plants and at our suppliers, and since we expect the shortage of semiconductors to continue in the long-term, we will consider the use of substitutes where possible. In this way, we will do everything we can to ensure we deliver as many cars to our customers as quickly as possible.
Regarding our full-year production forecast for the fiscal year ending March 31, 2022, we expect to maintain around 9 million units due to the easing of restrictions on COVID-19 in Southeast Asia, and the production cutback in September and October is expected to be 100,000 to 150,000 units, a smaller amount than previously announced.
Domestic production adjustments for November are detailed in the table below. We would like to offer our sincerest apologies to our customers and our suppliers for the various inconveniences these adjustments may cause.
