Toyota announced a reduction of its global production targets for June, the second such announcement this week. The causes are well known: recurring supply chain issues and containment measures re-imposed in China due to Covid-19 outbreaks.
The company also said its annual estimates could be revised downward as well.
Production at all manufacturers has been affected by the chip shortage and containment measures in China related to Covid-19.
Toyota's latest production cutback announcement comes a day after the release of data that showed car sales in China, Europe and the United States remain weak.
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Specifically, Toyota now expects to produce about 50,000 fewer vehicles in June, for a total of about 800,000, due to the Shanghai closure. On Tuesday, the Japanese giant had cut its plan for the same month by 100,000 vehicles, citing chip shortages.
Toyota further said it might cut its production target for the 2022 year to 9.7 million units.
“It is very difficult to estimate the current supply situation of parts due to the ongoing lockdown in Shanghai,” the company said.
Events in China are having a far-ranging impact in the industry because the country is both the largest automotive market on the planet and a global parts manufacturing giant. When regions go into confinement there, it doesn't take long for the domino effect to be felt.
For now, therefore, the pandemic continues to directly affect the industry.
Toyota said the production cutback will affect the Corolla, RAV4, Prius and 4Runner models.