Last month, Toyota cut its production target for the fiscal year through March to 8.5 million vehicles from its previous target of 9 million.
Toyota Motor Corp will review its production plans globally to make them more realistic as global disruptions have hampered the automaker’s efforts to increase output. The automaker’s efforts reflect the challenges it faces due to a semiconductor crisis, a cyber attack and the Ukraine-Russia conflict as it tries to make up for lost production.
Last month, Toyota cut its production target for the fiscal year through March to 8.5 million vehicles from its previous target of 9 million. The company has yet to announce a new production target for the current financial year. “We need to check the conditions before we do. If we don’t continue with proper production planning, this will lead to burnout,” CEO Akio Toyoda told union leaders, according to a statement on the company’s website.
Toyoda added that it is unusual for the production plan to exceed the capacity of personnel and equipment. He said the situation was “reaching the limit”, adding that the company would review its production plans based on current realities.
Other recent disruptions such as a cyber attack on one of Toyota’s suppliers caused all of its Japanese plants to be disrupted for one day last week, implying that the company will find it difficult to could recover any additional output for the fiscal year ending this month, according to Bloomberg Intelligence Analyst Tatsuo Yoshida.
In light of a troubled supply chain earlier in the pandemic, Toyota has been relatively resilient and is trying to ramp up production to meet soaring global demand for cars. Last month, the company said it planned to produce 950,000 vehicles in March, up from 843,393 vehicles assembled in the same month last year. Toyoda added: “We learned early on in times like major recalls the importance of prioritizing safety and quality first and not neglecting the people who support us. on the ground,” added Toyoda.
(with input from Bloomberg)
Date of first publication: March 9, 2022, 05:31 PM IST