Toyota to reduce production by 5% to 20% in the second quarter from the original plan

Recently, Toyota motor said it will cut its domestic car production by up to 20% in the second quarter to ease the pressure on its suppliers caused by the shortage of chips and other components.

A Toyota spokesperson said Toyota's suppliers have been forced to respond to a series of changes in production plans due to supply shortages. He added that the company's reduction in production should reduce some of the burden on suppliers. Toyota plans to cut domestic vehicle production by 20 percent in April, 10 percent in May and 5 percent in June, the spokesman said.

Toyota President Akio Toyoda said that unless the car companies have a "sound" production plan, suppliers will be "exhausted." Akio Toyoda said April and June would be a period of "deliberate cooling" and that the company would prioritize quality and safety. A Toyota spokesperson said the move reflects Akio Toyoda's desire to share information with suppliers as early as possible so that they can plan production.

Despite Toyota's announcement of production cuts, the spokesman said the company's production levels after April will remain higher as previously planned production was considered to compensate for earlier shutdowns. Toyota plans to produce a record 11 million vehicles in fiscal year 2022 while ensuring a stable supply of chips.

In addition to Toyota, Honda motor also said that due to the global shortage of microchips and geopolitical uncertainty, the company will cut production at two domestic plants by about 10% by the end of March, and the company's previous plan was to cut production until early March.