Suspension of most of Toyota’s product line

Online Economy – Parham Karimi; With the announcement of Toyota Motor, the company has suspended most of its production lines due to a shortage of parts due to quarantine in Shanghai, and this is a sign that supply chain bottlenecks may continue even with the gradual reopening of cities. Be.

Toyota plans to produce about 800,000 vehicles in June, of which 250,000 will be built in Japan and the rest abroad. This represents a decline in production of about one hundred thousand vehicles for June worldwide. The company plans to produce an average of 850,000 units per month by August, and has maintained its fiscal year target of 9.7 million units.

“We will do our best to deliver as many vehicles as possible to our customers as soon as possible,” Toyota said. The automaker issued a statement announcing the list of production lines that will be suspended in Japan early next month, in addition to other previously announced lines.

“The shortage of semiconductors, the outbreak of COVID-19 and other factors make it difficult to look to the future,” Toyota said in a statement. Due to the lack of supply of parts due to quarantine in Shanghai, we decided to stop production in some factories in May and June.

While restrictions are easing in most parts of the world, quarantine in China could continue to cause “significant damage to global supply chains” because the restrictions prevent them from spinning, according to the UK Business Continuity Institute. Goods are supplied in the chain. Earlier in May, Toyota forecast a 20 percent drop in operating profit for the current fiscal year due to an unprecedented increase in logistics and raw material costs.

It is noteworthy that in the current situation where major automakers, including Toyota, announce a reduction in their production level and stop more production lines every month, how are we going to see a 150% increase in supply in our country?