Toyota’s head of purchasing, Kazunari Kumakura, said Tuesday it would be “very difficult” to meet a target of making 9 million vehicles in the year through March due to supply-chain challenges, including semiconductor shortages. While the Japanese automaker didn’t set a new target for the year, it said it is cutting February production by about 150,000 units.
Toyota pared its loss to 2.8% as of 9:32 a.m. in Tokyo. That’s the biggest drop since Dec. 20 and trims its 2022 gain to 12%.SMBC Nikko Securities analyst Toshihide Kinoshita said it was noteworthy that even Toyota, with its relatively strong supply-chain management, can’t meet production targets. “The situation at other companies must be even more challenging,” Kinoshita wrote in a note.
Shares of Japanese automakers more broadly were lower Wednesday. Nissan Motor Co., Honda Motor Co. and Mazda Motor Corp. all fell more than 1%. Toyota said Tuesday that while it is looking to produce a high number of cars in March and in the new fiscal year starting April, “there are still risks and with Covid continuing to spread, conditions are proving difficult to read.”
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