Shanghai shutdown causes Toyota to halt production at eight factories

toyota car postpone Kyodo News reported that for more than a month in Shanghai, China, as part of a Japanese automaker’s efforts to cope with a microchip shortage caused by the Chinese coronavirus lockdown, 14 production lines across eight factories in Japan were running for almost a week at the end of this month. reported on Wednesday.

“[A]According to the Shanghai lockdown, Toyota has decided to suspend additional operations of 14 lines at 8 factories in Japan from May 16 (Mon) to May 21 (Sat).” press release May 10

“The global production plan was announced for about 750,000 units in May, but it is expected to be about 700,000 due to the effect of lockdown measures,” the automaker said.

Medical staff wearing protective gear walk out of an isolated area after spraying disinfectant in Huangpu District, Shanghai. (STR/AFP via Getty Images)

Toyota said the production halt was “[t]A shortage of semiconductors… [which] It makes it difficult to look ahead a few months.”

Toyota’s recent production adjustments were the second in recent weeks for the company’s output, due to microchip shortages linked to the Shanghai shutdown, Kyodo News reported Wednesday.

This photo, taken on April 29, 2022, shows a residential unit during the COVID-19 lockdown in Shanghai's Jing'an district.  (Photo: Hector RETAMAL/AFP) (Photo by HECTOR RETAMAL/AFP via Getty Images)

This photo, taken on April 29, 2022, shows a residential unit during the COVID-19 lockdown in Shanghai’s Jing’an district. (HECTOR RETAMAL/AFP via Getty Images)

“The number of Toyota plants in Japan affected by some disruptions increases to 12. The company, which operates a total of 14 plants in Japan, already said last month that it will shut down some of its ten lines at nine of its plants in May. There is a shortage of semiconductors,” said the Tokyo-based telecommunication company.

Toyota, the world’s number 1 car sales caution Investors on Wednesday said an “unprecedented” surge in raw material costs and rising logistics costs (both primarily due to the Chinese coronavirus pandemic) could cut the company’s annual profits by up to 20%.

Reuters reported that Toyota said on May 11 that “in the fiscal year beginning in April, the cost of materials will more than double to reach ¥1.45 trillion ($111.1 billion), which will be processed by converting to cheaper materials,” Reuters reported. We expect that,” he said.

Toyota CFO (Chief Financial Officer) Kenta Kon “As material prices are rising, we need to reduce material usage as much as possible and replace with cheaper materials.” said Reporters at a press briefing on May 11th.

Shanghai has since placed a citywide lockdown. April 5 To contain the latest epidemic of the Chinese coronavirus. Movement restrictions have brought production to a halt at regional factories in almost every city, including those dedicated to manufacturing semiconductors. Shanghai is considered a leading financial hub in China and globally. The metropolis is home to hundreds of manufacturing plants owned by multinational corporations such as Toyota, and is home to the world’s busiest container port. These attributes mean that the shutdown in Shanghai over the past month has created a logistics bottleneck that has frustrated businesses around the world, as well as raw material shortages across industries.

In response to the epidemic-causing global supply chain crisis significantly exacerbated by Shanghai’s continued closure, the Shanghai Communist Party-run government announced on April 15 special measures to allow factories to resume limited production if workers live on site. announced. The factory has maintained a so-called “closed-loop” management system to prevent the spread of the Chinese coronavirus.

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