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Toyota to cut auto production due to parts shortage

Toyota Motor, Japan's largest automaker, has told its component suppliers that the company will reduce vehicle production again in April and May.

Toyota to cut auto production due to parts shortage

Toyota Motor, Japan's largest automaker, has informed its components suppliers that the company will trim again its vehicle output for April and May by 13-14% across all domestic plants, due to the delay in component deliveries. Japan's flat steel consumption by the domestic auto sector won't become active soon, according to market sources.

The company had also lowered its March output over the continuing global shortage of semi-conductors, the delay in other components supplies amid COVID-19, and the suspension of supplies from some components makers who had been affected by the large earthquake that hit northern Japan on March 16, sources shared.

Toyota had initially planned to ramp up output since last October to cover losses over August-September caused by the delay in certain components supplies from Southeast Asian countries. But Toyota's auto production didn't improve as fast as it had expected, so the company has been making downward adjustments on its production plans, as reported with the latest adjustment, Toyota plans to produce about 250,000 units in April with 21 days of operations, lower from 290,000 units or by about 14% in its initial plan a month ago, and it plans to produce 210,000 units in 17 days in May, decreased by 13% or by 30,000 units, and its newly released output plan for June will be around 310,000 units in 22 days.

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