TOKYO, March 11 – Toyota Motor Corp has told suppliers it will cut domestic production by up to 20% from a previous plan for the three months from April, it said on Friday, to ease the strain on suppliers struggling with shortages of chips and other shares.
Toyota’s suppliers have been forced to deal with a number of changes to production plans due to the shortages, a Toyota spokesperson said, adding that the reduction in output should take some burden off them.
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The automaker is planning to scale back domestic production by about 20% in April, about 10% in May and about 5% in June from its previous the plan, the spokesperson said.
Toyota President Akio Toyoda told a Wednesday meeting with union members that suppliers would be “exhausted” unless there was a “sound” production plan.
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Toyoda said April through June would be “an intentional cooling off” period to make safety and quality the highest priorities.
The spokesperson said the effort was a reflection of Toyoda’s intention to share information early with suppliers so they can plan their production.
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Despite the reduction, the spokesperson said the output level from April onward would still be high as an original plan already incorporated the need to make up for lost production from earlier.
Toyota is planning to produce a record 11 million cars in fiscal 2022 as long as it can ensure a stable supply of chips.