Toyota Scales Back Japan Production Over Chips, Parts Crunch

Japan’s top automaker Toyota will scale back domestic production over the next three months because of a supply crunch in chips and other parts that have recently slammed the global auto industry.

AP Photo/Charles Krupa, File

TOKYO (AP) — Japan’s top automaker Toyota will scale back domestic production over the next three months because of a supply crunch in chips and other parts that have slammed the global auto industry.

Toyota Motor Corp. will cut back vehicle production in Japan by about 20% in April, by 10% in May, and 5% in June, compared to what was planned, spokeswoman Shiori Hashimoto said Friday.

Under a “recovery plan,” Toyota had raised production targets starting in April to catch up on lost production caused by parts shortages related to the COVID-19 pandemic, she said.

“So production will still be at a high level,” said Hashimoto. “We will continue to do our best to deliver vehicles to our customers as soon as possible.”

The topic of production came up in recent talks between management and workers to address “the hardships” at production lines and suppliers, according to Toyota.

The numbers may still change, as conditions remain fluid. Toyota did not give specific numbers or other details.

Toyota, which makes the Camry sedan, Prius hybrid and Lexus luxury models, produced 2.88 million vehicles in Japan last year. When including group companies, truck maker Hino and smaller car maker Daihatsu, production totaled 3.89 million vehicles in Japan. Globally, Toyota, Hino and Daihatsu produced about 10 million vehicles.

All the world’s automakers have been hit hard by production delays in suppliers as regions observed lockdowns and other restrictions during the pandemic. Toyota has customers waiting for months for the products to be delivered.