Hyperdrive
Toyota Cuts Show Covid Ravaging Even Best Supply Planners
- Carmaker slashes production plan for next month by about 40%
- While chips are the main issue, disruptions are widespread
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Toyota Motor Corp.’s efforts to stockpile enough chips and other key components to ride out supply disruptions only protected the company so long before it too succumbed to the shortages eviscerating automakers.
The manufacturer will suspend output at 14 plants across Japan for various lengths of time through next month. The impact of these cuts will be harshest in September, with Toyota slashing its production plan by 40%, though risks will carry forward beyond next month.