Global supply chain: Toyota extends Japan production stoppages

Toyota announced it would extend the production shutdowns at certain factories in Japan, as it continues to feel effects from supply chain problems.

Global supply chain: Toyota extends Japan production stoppages

According to the world's largest automaker, its South East Asian component factories were affected by the Covid-19 pandemic.

The delays will affect Lexus and Land Cruiser production.

According to the company, December's lost production due to the latest halts will amount approximately 14,000 vehicles.

Toyota sent an email to BBC explaining that the stoppages were caused by "lower attendance at suppliers in South East Asia due the re-spread Covid-19 and tight logistic situation in Japan."

The company stated that it would aim to meet its annual global production goal for the year ending 31 March. "We would love to maintain 9,000,000 units, but will be closely monitoring the situation."

Due to a shortage of computer chips, the Japanese automaker cut its global production forecast in August.

Supply chain crisis causes Japan's export growth to slow

Computer chip supply crisis exacerbated by factory fire

Toyota's competitors, such as General Motors and Ford, Daimler, BMW, Renault, Daimler, Nissan, Daimler and BMW, were also forced to reduce production because they couldn't secure enough semiconductors.

Car makers are also affected by disruptions from the pandemic. This is because one of the largest suppliers of computer chips to the industry was severely damaged in an explosion at its factory in Japan. Renesas, which warned that the pandemic could have a significant impact on its ability to fulfill orders, stated March.

Economic impact

The country's economy is also being affected by the global supply chain crisis that has hit Japan's automotive industry.

Japan's exports ended a streak of seven months of double-digit growth, and rose by 9.4% over the year to October.

It was the slowest growth in eight years and it was lower than expected.

Shipments of cars fell by 37% compared to the same period in 2020.

According to data from Japan's Ministry of Finance, almost half of Japan's car exports to China and the US have declined,

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