Toyota Motor Corp announced on Friday that it would cut vehicle production in Japan by 122,000 units in June, as lack of demand for new cars due to the coronavirus forces the automaker to keep its factories in limited operation. The decline in Toyota production highlights the difficult conditions for automakers worldwide due to the consequences of the virus. In addition to weak demand, purchasing problems and social distancing in factories are also expected to affect production. The automaker said it would stop production at all of its 15 factories for four days next month, while stopping production for up to 7 days in 10 of its production lines, that make models that include the Prius gasoline hybrid, the Corolla sedan and the 4Runner SUV.
Also read: Toyota sees 80% drop in profits as virus eliminates $ 14 billion rebate on auto sales
Toyota to reduce production due to lower market demand due to COVID-19
In addition, he plans to operate single teams on five production lines next month, an agreement that will continue on two lines in July and August in another, he said in a statement.
A Toyota spokesperson said the production cut represents a 40% reduction from initial plans made earlier in the year, while refusing to elaborate. In June 2019, it produced 289,544 vehicles at home.
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Earlier this week, Reuters announced that Toyota plans to cut production in North America by almost a third until October due to the coronavirus. The automaker resumed part of its production at its seven North American sites this week.
Toyota is preparing for an 80% drop in full-year operating profit, its lowest level in nine years, as it expects car sales to remain weak for much of the year.
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Some analysts estimate that global auto sales in the industry could fall by a third this year and that any recovery will slow and be uneven as job losses and income declines will weigh on consumer spending.
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