Toyota cuts production due to COVID lockdown in Shanghai

Toyota cuts production due to COVID lockdown in Shanghai

Production halt will come into effect on Monday and stay in place until of end of next week, the BBC reported.

AgenciesUpdated: Wednesday, May 11, 2022, 08:45 PM IST
article-image
Toyota is the latest big car maker to announce that it is being impacted by the COVID-19 measures in China. / Representational image |

Toyota says it will suspend operations at more production lines at its factories in Japan this month due to the coronavirus lockdown in Shanghai, media reports said.

The firm says the production halt will come into effect on Monday and stay in place until of end of next week, the BBC reported.

It is the latest big car maker to announce that it is being impacted by the COVID-19 measures in China.

Meanwhile, Tesla has reportedly halted most production at its Shanghai plant due to problems with sourcing parts, the BBC reported.

"Due to the impact of the semiconductor shortage, we announced our revised production plan for May," Toyota said.

"However, as a result of the lockdown in Shanghai, China, we have decided to additionally suspend operations of 14 lines at 8 plants in Japan from May 16 (Mon) to May 21 (Sat)," it added.

The company previously said it planned to produce around 750,000 vehicles globally this month but said it had now cut that forecast by about 50,000 due to the lockdown.

Also on Wednesday, Toyota revealed that its quarterly profit had slumped by a third as it felt the impact of production disruptions caused by a global shortage of computer chips and China's COVID-19 restrictions, BBC reported.

The world's biggest car maker by sales posted an operating profit of $3.56bn for the three months to the end of March, well below market expectations.

The company's shares were around 4.5 percent lower in Wednesday afternoon trade on the Tokyo Stock Exchange.

Toyota's announcements came as Shanghai is in its sixth week of an intensifying lockdown that has made it increasingly difficult for manufacturers to operate amid tough restrictions on the movement of people and materials.

It is the latest example of a major car maker being forced to cut back production as a result of the lockdown in Shanghai, BBC reported.

(With IANS inputs)

RECENT STORIES

Gold Shines Bright: Jumps ₹400 To Breach ₹74,000 Mark; Silver Hits Fresh Peak

Gold Shines Bright: Jumps ₹400 To Breach ₹74,000 Mark; Silver Hits Fresh Peak

'Ethylene Oxide Presence': Singapore Issues Recall On Everest Fish Curry Masala Due To Harmful...

'Ethylene Oxide Presence': Singapore Issues Recall On Everest Fish Curry Masala Due To Harmful...

Ford Territory Name Trademarked in India, Set to Compete with Mahindra XUV700 and Tata Harrier

Ford Territory Name Trademarked in India, Set to Compete with Mahindra XUV700 and Tata Harrier

5-Month-Old Ekagrah Murty To 'Earn' ₹4.2 Crore From Infosys' Blockbuster Earnings Dividend

5-Month-Old Ekagrah Murty To 'Earn' ₹4.2 Crore From Infosys' Blockbuster Earnings Dividend

'Torn And Taped': X User Shares His Ordeal After SBI ATM At Delhi Airport Dispenses Damaged ₹500...

'Torn And Taped': X User Shares His Ordeal After SBI ATM At Delhi Airport Dispenses Damaged ₹500...