Leading car manufacturer Toyota Motor Corp. (TYO: 7203) has revealed that it will be slashing its global production by 100,000 to roughly 850,000 vehicles in June due to the prolonged global shortage of computer chip which has disrupted normal production activities especially in the car industry.
The company made this announcement on May 24, it however failed to slice its estimate of producing about 9.7 million vehicles across the world by the first quarter next year. The company also announced additional domestic factory line suspension attributed to supply shortage triggered by COVID-19 lockdown in Shanghai.
The additional suspension will last for a period of five days between May 25 to June 3and it will affect 16 lines at 10 factories for May and June in total.
Toyota also revealed that it intends to produce around 850,000 vehicles globally on a monthly average from June through August further adding that the chip shortage and the coronavirus lockdowns, and increasing costs of raw materials among other factors are making it hard for the company to give forward looking statements.