Toyota cuts Q2 production to ease supplier pressure

Toyota has confirmed it will reduce its Japanese production by as much as 20 per cent in the second quarter of 2022 (April to June inclusive).

According to Reuters, the move is an attempt to reduce the ongoing strain on Toyota’s supply-chain, with suppliers struggling to meet demand over the past two years thanks to the COVID-19 pandemic, semiconductor chip shortages, and now further issues caused by the crisis in Ukraine.

The car giant says it will reduce production at its factories in Japan by approximately 20 per cent in April, 10 per cent in May, and five per cent in June.

Toyota-owned supplier Denso is also understood to have suffered from a ransomware attack last week at its German offices, Automotive News Europe reports, just a week after another key parts manufacturer suffered from a cyber attack. The incident forced Toyota to shut down its domestic production for 24 hours.

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A Toyota spokesperson was confident its annual output would remain high, though it’s not known whether the company’s forecast of 11 million vehicles for the 2022 financial year will be upheld.

Toyota isn’t the only carmaker struggling with supply-chain issues. BMW, Mercedes-Benz, and Volkswagen Group brands have all been forced to reduce production across Europe, while Honda announced last month its Japanese manufacturing would be running at 90 per cent capacity throughout March.