Toyota has announced it will cut production in Japan between April and June to relieve pressure on suppliers, many of whom are short on parts, including semiconductor chips. A company spokesman told Archyde.com that the company plans to slow production from previously announced levels by 20% in April, and about 10% in May, in addition to 5% in June.
The plan aims to relieve some of the burden on its suppliers who have had to deal with a number of changes in production plans as a result of various shortages.
Toyota said that the effort is being made in an effort to give suppliers as much time as possible by providing them with information as soon as possible, and the deliberate cooling-off period is also coming by Toyota in an attempt to make safety and quality a top priority for Toyota.
At a meeting with union members, Japanese automaker Akio Toyoda said supplies will run out unless a proper plan is put in place. Toyota said production for the second quarter will remain high though, because its earlier plans included the need to make up for lost production from earlier. Toyota plans to produce 11 million vehicles in 2022 as long as chip supplies continue.
The ongoing war is also expected to affect Ukraine, where the latter produces about 70 percent of the world’s supply of neon, the primary gas for lasers used to make semiconductor chips. Although most chip makers were stockpiling neon in preparation for war, its longevity could lead to another shortage of chips.