<mediadc-video-embed data-state="{"cms.site.owner":{"_ref":"00000161-3486-d333-a9e9-76c6fbf30000","_type":"00000161-3461-dd66-ab67-fd6b93390000"},"cms.content.publishDate":1655899504369,"cms.content.publishUser":{"_ref":"0000017c-2d8e-d3f3-a7fc-7ffef6720000","_type":"00000161-3461-dd66-ab67-fd6b933a0007"},"cms.content.updateDate":1655899504369,"cms.content.updateUser":{"_ref":"0000017c-2d8e-d3f3-a7fc-7ffef6720000","_type":"00000161-3461-dd66-ab67-fd6b933a0007"},"rawHtml":"
var _bp = _bp||[]; _bp.push({ "div": "Brid_55899339", "obj": {"id":"27789","width":"16","height":"9","video":"1037515"} }); ","_id":"00000181-8b4c-df44-ad8b-cb6eed030000","_type":"2f5a8339-a89a-3738-9cd2-3ddf0c8da574"}”>Video EmbedToyota is cutting back on the number of vehicles it produces as supply chain and semiconductor limitations limit the auto industry’s production capabilities.
The car manufacturer said in a Wednesday statement that the company expects to cut its production quota in July by 50,000. This will bring its July estimates to around 800,000 vehicles, lower than the 850,000 estimated by the company.
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“As it remains difficult to look ahead due to the shortage of semiconductors and the spread of COVID-19, there is a possibility that the production plan may be lower,” Toyota said in a statement.
Toyota is not the only automaker affected by the semiconductor shortage. The lack of electronic materials has been a constant problem throughout the pandemic and has lingered.
The Japanese carmaker experienced a particularly notable decline in production in June. The company cut its global production plan for June by 100,000, a decision that was partly inspired by the semiconductor shortage as well as Shanghai’s recent lockdown in an attempt to stop the spread of COVID-19. The lockdown ended up restricting the ability of several factories to continue operating due to a lack of workers.
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The company has maintained that it intends to produce 9.7 million vehicles by the end of 2022. However, the company has said supply chain issues may lead it to force that number lower.
The auto industry has continued to underperform in 2022, although other elements have surged. Ford announced in June that it was adding over 6,000 jobs to expand its electric car production. Monthly car payments have also risen to record highs as vehicle costs soar.
