Japan's Toyota to cut production by between 5%-20% from previous plan

Mar 11, 2022 | News On Japan

Mar 11, 2022 (Reuters) - Toyota Motor Corp (7203.T) 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 parts.

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 of the burden off them.

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.

Toyoda said April through June would be "an intentional cooling off" period to make safety and quality the highest priorities.

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