Toyota Cuts Production Amid Semiconductor Shortage

Toyota (NYSE: TM) announced that it will be cutting back on production, ultimately manufacturing 800,000 fewer vehicles globally. According to the automaker, the change comes amid the Covid-19 lockdown in Shanghai.

“It is very difficult to estimate the current supply situation of parts due to the ongoing lockdown in Shanghai,” Toyota said.

Toyota still expects to produce 9.7 million vehicles worldwide within the current financial year, though it is possible for that estimate to fluctuate. Additionally, Toyota revealed that it would be halting production at some of its domestic factories for the week of June 6.

“The shortage of semiconductors, spread of COVID-19 and other factors are making it difficult to look ahead, but we will continue to make every effort possible to deliver as many vehicles to our customers at the earliest date,” a statement added.

Furthermore, Toyota recently reported disappointing profits, which fell by USD0.31 throughout the quarter. The company cautioned that the consequences brought on by Covid-19 and supply chain delays, have affected its operations and brought uncertainty to any future plans.