Japanese automotive giant Toyota is cutting its vehicle production forecasts once again, in Japan and overseas, on Friday. After a similar announcement in August, the world’s largest automaker is still facing a parts shortage.
According to a statement, Toyota plans to produce 400,000 vehicles less than initially estimated in September and October – 180,000 in Japan and 220,000 abroad – due to a “shortage of certain parts” caused by the spread of Covid-19 in Southeast Asia.
The world’s largest carmaker by volume in 2020 announced last month a reduction of 40% in global production for September compared to its forecast, or 360,000 fewer vehicles.
The company expects total production of 9 million vehicles for the full 2021/22 fiscal year that began April 1, the statement said. The statement also referred to the impact of a worldwide semiconductor shortage on its operations.
Although its April-June quarter results were up sharply year-over-year, the Japanese giant reiterated its forecast for operating profit of 2.5 trillion yen for 2021/22.
The demand for chips has soared during the pandemic as consumer electronic companies rush to meet stay-at-home demand for their smartphones, tablets, and other devices.
While Toyota’s reliance on Southeast Asian factories for parts is a headache, it is also causing problems for its rivals, which have struggled with “volatile and tight” chip supplies, as described by Volkswagen AG.
According to the German automaker, it may be forced to cut production further. Ford Motor also halted production last month at a plant in Kansas, U.S., that makes its popular F-150 pickup car, and France Renault SA extended partial shutdowns at plants in Spain.
This month, German luxury carmaker Daimler is also warning of significant third quarter sales declines due to global chip shortages.
Toyota Motor Corporation was trading at 180.07 at close (September 9 4:00PM EDT).