Toyota is reducing its production by 500,000 units
Toyota has cut its annual production target by half a million units due to chip shortages and Cavid-19 leave, according to Trade News.
According to the automaker, Toyota will reduce production to 8.5 million units by the year ended March 31. In the quarter ending December 31, 2021, Toyota saw a 21 percent drop in operating profit.
“We expect the chip supply imbalance to be resolved soon,” said a Toyota official. “We think the uncertainty is likely to continue into next fiscal year.”
Quoted from ReutersLike other major automakers, Toyota, which was expected to build more than 9.3 million vehicles by 2022, is now forced to cut production due to the impact of the Corona pandemic on the global supply chain. This has led Toyota to cut costs in order to make more profit.
Efforts to increase profit margins have come as demand in markets such as China, the United States and Europe has strengthened. An issue that has increased the possibility of price increases. The company has also benefited from the weakening yen.
Toyota has struggled to meet its $ 24.3 billion profit forecast. That’s less than the $ 26.3 billion profit forecast by 27 Refinito analysts.
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