Automobile

Toyota cuts global production outlook by half a million cars

Toyota this week cut its financial year production outlook by 500,000 cars, citing ongoing supply chain issues.

The company downgraded its Japanese FY2023 production forecast from 9.7 million units to 9.2 million units – having stuck to its original target for months.

Toyota did hint at an incoming revision to its production plan in late October, when it was announcing another monthly cut.

The company also says it expects to build approximately 750,000 units (250,000 in Japan and 500,000 elsewhere) in December, against previous guidance to expect 850,000.

It will suspend production for a few days at three of its Japanese plants (Takaoka, Tahara, and Miyata).

“We at Toyota would like to again apologise for the repeated adjustments to our production plan due to the parts shortage resulting from the spread of COVID-19, and for causing considerable inconvenience to our customers, who have been waiting for the delivery of vehicles, suppliers, and other parties concerned,” TMC said.

“As for the full-year production forecast for FY2023, we have taken future risks such as the shortage of semiconductors into account and announced 9.2 million units.

“We will continue to closely examine the supply of parts and work with related parties to consider all possible measures to ensure that we can deliver as many vehicles to our customers at the earliest date.”

Background

COVID and semiconductor shortages in its factories and wider supply chain have smashed Toyota lately. It has posted more than 20 production bulletins and subsequent amendments this year as it’s scrambled to navigate difficult waters.

Toyota Australia dealers affected by ongoing chronic stock shortages are telling some customers to prepare for multi-year wait times on core models including LandCruiser, RAV4 and Camry.

The company acknowledges the long waits but says there’s not really a one-size-fits-all timeframe, because each dealership has different pipelines.

“Demand for new vehicles is at unprecedented levels. In Australia, to support the strong demand, Toyota Australia been working closely with our global production teams to secure as many vehicles for our market as possible,” it said recently.

“Wait times vary depending on the model, variant and specification requirements of each customer. The RAV4 Hybrid, Camry Hybrid, LandCruiser 70 and LandCruiser 300 are in particularly high demand and currently have longer wait times.

“Due to the evolving nature of this situation, Toyota dealers are best placed to continue to provide updates to customers on delivery timeframes for individual orders.”


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