Japan’s Toyota to cut production by between 5%-20% from previous plan

The logo of Toyota is pictured at the 38th Bangkok International Motor Show in Bangkok

TOKYO (Reuters) – Toyota Motor Corp has told its suppliers it will reduce domestic production by up to 20% from a previous plan for the three months from April, a spokesperson said on Friday.

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The reduction is part of an effort to alleviate the burden on suppliers forced to adapt to repeated production plan changes due to acute shortages of semiconductors and other supplies, the spokesperson said.

The automaker is planning to scale back domestic production by about 20% in April, about 10% in May and about 5% in June from its previous the plan, the spokesperson said.

Toyota President Akio Toyoda told a Wednesday meeting with union members that suppliers would be “exhausted” unless there was a “sound” production plan.

Toyoda said April through June would be “an intentional cooling off” period to make safety and quality the highest priorities.

The spokesperson said the effort was a reflection of Toyoda’s intention to share information early with suppliers so they can plan their production.

(Reporting by Satoshi Sugiyama; Editing by Sam Holmes, Robert Birsel)

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