Global Supply Chain: Toyota Extends Japan Production Stoppages

Posted by: Kyeyune Andrew Jonathan in World news December 14, 2021

Toyota has announced that it will extend production stoppages at some factories in Japan as it continues to feel the impact of supply chain issues.

The world’s largest car manufacturer said its components factories in South East Asia had faced disruptions due to the pandemic. Land Cruiser and Lexus production will apparently be hit by the delays.

The company said that lost production from the latest halts will total about 14,000 vehicles in December.

Toyota said in an email sent to the BBC that stoppages were due to a lower attendance rate at suppliers in South East Asia. This happened majorly as a result of the re-spread of Covid-19 and the tight logistics situation in Japan.

However, the company also said it aimed to its annual global production target for the year ending on March 31: ‘’we would like to maintain 9 million units, but we will keep a close eye on the situation.’’

In August, the Japanese automaker slashed its global production forecast due to the computer chip shortage.

Toyotas rivals including General Motors, Ford, Nissan, Daimler, BMW, and Renault have also scaled back production. This is because they have also been struggling to secure enough semiconductors.

It isn’t only the pandemic that has caused the disruptions being faced by carmakers. They have also been impacted after one of the industry’s biggest computer chip suppliers suffered a major fire at one of its factories in Japan.

Apparently, the global supply chain crisis hitting Japan’s motor industry is also having an impact on the country’s economy as a whole. Japan’s exports broke a seven-month streak of double-digit expansion, rising by 9.4% in the year to October.

It became the slowest growth in eight months and lower than forecasts. This partially hit hard the shipments of cars, down by almost 37% from the same time in 2020.

Car exports to Japan’s two largest trading partners, China and the US, dropped by almost half. This is according to data from the country’s Finance Ministry.

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