Toyota cut its production forecast by about 3% to 9 million from 9.3 million units in the fiscal year through March, blaming it for the spread of the coronavirus in Southeast Asia.
The number one automaker in the world revised production in September and is revising its plans for October, meeting forecasts for an operating profit of 2.5 trillion yen ($ 22.7 billion) for the fiscal year.
Last month Toyota warned of cuts due to shortages of semiconductors and manufacturing parts, as manufacturers have been hit by the fallout from Covid-19. But the move shows how Toyota, having overcome shortcomings well relative to its peers, is now vulnerable to the same restrictions that are hurting the industry.
“The main reasons for the production adjustment include reduced operations at many local suppliers due to the prolonged spread of the Covid-19 virus in Southeast Asia and the impact of more limited semiconductor supplies,” the company said. in a note. The current demand is still very high. strong.”
Over the past decade, Japanese automakers have invested heavily in Southeast Asia, a source of cheap labor and a complement to their operations. in China in amid the trade tensions between that country and the United States. Thailand is a major manufacturing center for Toyota, Mitsubishi Motors, Honda Motor Co. and Nissan Motor Co ..
The company is looking to secure spare parts to meet global demand for automobiles, which is running out of stock. Car manufacturers around the world have lost revenue due to production shortages. India’s largest carmaker, Maruti Suzuki India Ltd., said volume is expected to drop to around 40% of normal in August.
In Japan, Suzuki Motor Corp. has decided to cut production of auto 20% in September, while in Europe, France’s Renault SA plans to close its assembly plants in Spain up to 61 days before the end of the year.
Toyota added: “The spread of COVID-19 infection remains unpredictable, making it difficult to maintain operations due to closures. in various locations and we are working to move production in other regions “.
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