Toyota cut production 40% (F, GM stock could get hit)
Toyota to make 360,000 cars next month, 40% less than planned. TM stock down almost 5%. F and GM stock could get hit also! Other car companies may get downgraded?
From Bloomberg
Toyota slumped as much as 4.7% as the worsening chip shortage saw the world’s No. 1 automaker suspend output for several days at almost all its plants in Japan next month, forcing a 40% cut in production plans. Adjustments will be made to the production operations of plants for completed vehicles in Japan due to parts shortages resulting from the spread of Covid in Southeast Asia, Toyota said in a statement Thursday. A total of 360,000 cars will now be made next month. The cuts were reported earlier by Nikkei.
Some 26 lines in 14 plants in Japan will be impacted, affecting production of models from the RAV4 to Corolla, Prius, Camry and Lexus RX, Toyota said. That represents a hit to every one of the plants Toyota has across the country bar one.
While a shortage of automotive chips has hindered many rivals’ ability to capitalize on strong global demand for cars over the past nine months, Toyota up until now had been relatively unimpaired due to its supply chain savvy.
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