Toyota Slashes Production Target Due to COVID-19
The world’s largest automaker, Toyota Motor Corporation is still struggling to run operations at full capacity. The company announced yesterday that it has suspended operations on 14 lines at eight factories. The suspension continued for up to six days in May due to COVID-19 induced lockdowns in China.
The company has also reduced its global production target for May to 700,000 from the previous 750,000. The company refused to provide a yearly estimate for its lost production figures.
Toyota is one of the few automakers to slash production targets due to China’s COVID-19 lockdown. Tesla, SAIC, FAW Group, and Dong Feng Corp are other major carmakers that have halted production.
Earlier this year, Toyota had to cease production at 18 lines in Japan after a massive earthquake ravaged the country. The shutdown resulted in a loss of 20,000 units in output. During that time, chip shortage had also trimmed Toyota’s global production target.
However, despite that, Toyota witnessed a steady rise in global production in 2022. The company recorded all-time-high production of 866,775 units in March 2022, as its strong demand in other countries helped offset its production slump in its home country.