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Toyota Misses Global Production Target

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Employees of Toyota Motor Corp. work on the assembly line at the company's Motomachi plant in Japan | Image by Issei Kato, Reuters

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Toyota announced Monday that it missed its global production target for April due to COVID-19 outbreaks and parts shortages.

The Japanese automaker produced 692,259 vehicles in April, short of its target of 750,000 and a 9.1% drop from the same month last year.

Last week, Toyota, the world’s highest-selling automaker, lowered its global production target for June twice.

On Tuesday, the automaker announced it was reducing the target by 100,000 vehicles to 850,000, citing the microchip shortage. The shortage of microchips used in electronics and vehicles has caused several automakers to halt or slow production over the last two years.

On Friday, Toyota lowered the target by another 50,000 due to continuing lockdowns in Shanghai, saying it now expects to produce 800,000 vehicles in June.

The company also signaled it would likely lower its full-year global production target of 9.7 million vehicles, saying the shortage and lockdowns “are making it difficult to look ahead.”

Toyota is not the only global automaker taking a production hit due to the microchip shortage and China’s COVID-19 lockdowns.

Subaru has announced that its U.S. dealerships have a record low inventory of around 5,000 vehicles. Honda said it would cut production by 20% at two domestic factories.

Toyota also said Monday that its global sales dropped to 763,708 vehicles in April, an 11.1% fall compared to the same month last year. Domestically, its sales fell 17% to 103,143 vehicles.

The reduction in target for Toyota comes a day after data was released showing that car sales in China, Europe, and the United States remain weak, according to Reuters.

Toyota also announced domestic factory line suspensions last week due to supply shortages triggered by lockdowns in Shanghai. A total of 16 lines at 10 factories were suspended but are expected to resume on June 3. Toyota said that the production suspension would impact its Corolla, RAV4, Prius, and 4Runner models.

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