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• The halt will reduce output by 20,000 vehicles in Japan starting next month
• The company will continue to maintain the fiscal year production target of 9 million units
Toyota Motor Corp announced on Monday that production at five domestic plants would be halted in January owing to supply chain concerns, semiconductor shortages, and the COVID-19 pandemic.
The stoppage at the factory would affect around 20,000 automobiles. For the fiscal year ending March 2022, the Japanese carmaker said it will retain its worldwide production forecast of 9 million vehicles.
Toyota's Takaoka plant's manufacturing line for sport utility vehicles such as the RAV4 and Harrier would be shut down for a total of seven days, including two days of holiday production.
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Two lines at the company’s Auto Body's Yoshiwara Factory, one line each at the Inabe and Fujimatsu plants, and two lines at Toyota Industries' Nagakusa facility will also be shut down for two days.
In December, Toyota anticipates restricting output at its domestic factories by around 22,000 owing to parts procurement constraints in Southeast Asia.
Moreover, Toyota announced last week that it expects to reduce car production in North America by 50,000 units in January owing to supply chain difficulties.
Production Plans in January 2022
The worldwide production plan for January 2022 is estimated to reach 800,000 units, including the consequences of past production cutbacks, wherein global manufacturing levels in January 2021 were roughly 740,000 units.
Furthermore, the company will continue to maintain the fiscal year production target of 9 million units.
In response to the ongoing scarcity of components, Toyota said in a statement, “We will continue working with our suppliers to strengthen our supply chain and will do everything we can to ensure that we deliver as many cars to our customers as quickly as possible.”
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The Japanese automobile giant pledged 8 trillion yen ($70 billion) to electrify its automobiles by 2030, half of which would go toward developing a completely electric lineup to capitalize on burgeoning demand for zero-emission vehicles.
CEO Akio Toyoda stated that the company's goal is to sell 3.5 million battery-electric cars (BEV), or roughly one-third of its current vehicle sales, by the end of the decade.
At a press conference in Tokyo, the CEO said that by 2030, the business will offer 30 new electric models named the "bz series," which stands for "beyond zero," including sport-utility vehicles, pickup trucks, and sportscars.
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(1 Japanese Yen = 0.0088 USD)
With inputs from Nikkei Asia
Picture Credits: Autocar Professional