Toyota cuts June output plan again, to 800,000 vehicles

TOKYO (Financial Eye) -Japan’s Toyota Motor (NYSE:) Corp on Friday cut its global production plan for June for the second time this week, reducing its planned output by about 50,000 vehicles to 800,000, citing the COVID-19 lockdown in Shanghai.

Japan’s largest automaker said it still expects to produce 9.7 million vehicles worldwide in the current financial year, though there is a “possibility” of a lower estimate.

The company said it would suspend operations at some of its domestic plants for the week of June 6.

The reduced estimate by Toyota – widely viewed as a bellwether for Japan Inc – is the latest evidence of how China’s pandemic lockdown has added to uncertainty for automakers and other manufacturers already grappling with a shortage of microchips.

On Tuesday Toyota cut its production plan for June by about 100,000 vehicles to roughly 850,000, citing the semiconductor shortage. Friday’s announcement, therefore, means the company has now cut 150,000 vehicles from its June estimates.