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Toyota Stalls Japan Production Lines Over Supply Shortages

Supply chain issues in Japan on top of labour shortages in Vietnam because of the Covid pandemic were blamed by the auto giant


Toyota said on Thursday its first quarter operating profit dropped by 42%.
Toyota Logo. File photo: Reuters.

 

Toyota has been forced to pause two production lines at factories in Japan because of supply shortages.

The reported stoppage means that Toyota cannot return to normal operations in December as it had originally planned. 

The automaker had previously said that it hoped to return to normal production for the first time in seven months before the end of the year, after supply shortages disrupted production. 

 

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Production at the factories was halted on Wednesday, though, and the suspension is expected to continue for about three days, a spokesperson admitted.

Supply chain disruptions in Japan as well as labour shortages in Vietnam due to the Covid-19 pandemic were blamed.

The company expects a production fall of 3,500 vehicles from the stoppage but says will keep to its target to produce 9 million vehicles worldwide during the financial year ending on March 31, the spokesperson said.

 

  • Reuters with additional editing by Sean O’Meara

 

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Sean O'Meara

Sean O'Meara is an Editor at Asia Financial. He has been a newspaper man for more than 30 years, working at local, regional and national titles in the UK as a writer, sub-editor, page designer and print editor. A football, cricket and rugby fan, he has a particular interest in sports finance.