Toyota to extend production halt in Japan amid a surge in Covid cases

Toyota Motor Corp has announced that it will pause vehicle production further in Japan this month as the rising Covid-19 cases among autoworkers have hindered the supplies of parts. This disruption comes as automakers around the world are still struggling with the semiconductor shortage.

A company spokesperson conveyed the break will cut planned production this month by 65,000 vehicles, 18,000 more than it announced last week. The company will put in efforts to make up for lost production in February, added the spokesperson. The automaker had stated last week that its annual target to manufacture 9 million vehicles might remain unachievable as it does not have enough chips. The company's business year ends on March 31.

The company had suspended a shift on a second production line at its Tsutsumi plant along with another shift on a different line at the central Japan plant. It has been reported that this pause led to a cut in production of around 1,500 vehicles.

Toyota had also halted its manufacturing in China because of the country's norm of mass testing based on the Covid-Zero Policy. An earlier report stated the brand has shut its China plant for more than a week now. It also added that auto major Volkswagen too has been struggling with the strict strict quarantine and mass testing rules. It had reported that its factory which manufactures around 3,00,000 cars a year including the Audi Q3, has been temporarily shut down due to parts shortages and pending test results of workers.

Automakers such as Honda Motor Co and Nissan Motor Co had stated production cut due to the global chip crisis and Increasing Covid-19 cases. Chief Executive Officer Makoto Uchida of Nissan had stated the company is “on a recovery track" even though the chip shortage situation remains uncertain. “We expect the market to recover but the Covid situation is uncertain and we need to be prepared and continue to monitor," Uchida said.

(With inputs from Reuters)