The global chip shortage will be the major cause.
Toyota’s business year runs from April to March.
They’d plan to produce 9 million vehicles.
Toyota was recently crowned the #1 automaker in the US by volume. This outcome was in large part a result of the pandemic-related global microchip shortage and other parts supply chain issues. Despite being #1 in the US, Toyotas expects they will come up short and miss their production targets.
“Hitting the 9 million mark is going to be extremely difficult,” said Kazunari Kamakura, an executive at the world’s biggest carmaker as reported by Reuters. Like most automakers around the world, Toyota’s had to manage disrupted part supply lines and the resulting lowered output.
In February, Toyota thinks they will assemble 700,000 vehicles globally or about 150,000 fewer than planned. Although the estimated production number is higher than the 2021 figure, it’s still far short of where they want to be.
If Toyota is to hold any hope that it will reach its 9-million-unit target, they will need to build 1 million vehicles in March alone. This outcome is highly unlikely.
