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Toyota Is Having Problems Building Cars

May. 30, 2022 5:06 PM ET by Chris Teague Industry News / Comments The world's largest automaker slashed its production outlook again. Though many feel that life is returning to normal, Toyota's pandemic struggles aren't over. The automaker recently announced a reduction of its production numbers for June, citing the Chinese lockdowns and supply chain issues as significant obstacles. China is the largest auto market globally, and the country's factories manufacture a variety of automotive components. The country's severe lockdowns have multiple implications for the world's automakers. Toyota acknowledges the challenges that have arisen with the lockdowns and says that it could cut its overall annual vehicle output from its current level of 9.7 million vehicles. The automaker noted that "it is very difficult to estimate the current supply situation of parts due to the ongoing lockdown in Shanghai." The automaker's factory in South Africa was also damaged by flooding, further impacting its production capabilities. Toyota released a tool to track production and delivery dates, but the situation isn't improving as quickly as it hoped. Toyota Toyota Toyota is viewed as the canary in the coal mine for trends in the Japanese auto industry, so this announcement has raised eyebrows around the globe. The world's largest automaker said it cut 50,000 vehicles from its June outlook, which is now down to 800,000 vehicles. This move comes days after the automaker slashed its forecast by 100,000 vehicles due to chip shortage issues. Toyota has an expansive catalog, with vehicles in several popular categories, but the shutdown impacts some of its most popular models. The 4Runner, Corolla, Prius, and RAV4 will be affected, so the suspension will likely reduce already constrained inventories of those vehicles. Toyota's already had to delay the all-new bZ4X EV and the few units up for sale are seeing huge markups, so the automaker's new vehicle rollouts are also being affected. Toyota Toyota Toyota may be the largest automaker, but it's hardly the only one suffering from pandemic-related shutdowns and supply chain issues. Many automakers are removing popular features from vehicles to work around missing microchips. Several are cutting their production outlooks to accommodate the delays and speedbumps that come from a hobbled supply chain. Subaru is in a particularly tight spot, as it has warned dealers of a massive new vehicle shortage, and Honda has cut its forecast by 20 percent at two of its US facilities. Ford has paused production of some models multiple times, and many others temporarily closed production facilities throughout 2021 and into 2022. Toyota Toyota Source Credits: Automotive News

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