11 Toyota Plants Shut Down As Supply Crisis Pinches Automaker Amid Pandemic

Toyota (TM) will temporarily halt production at 11 of its 14 plants in Japan due to a parts supply shortage caused by the “spread of COVID-19” at its suppliers throughout the country.

The plant shutdowns will run Friday through Monday.

In a statement, the automaker said, “We sincerely apologize for the inconvenience this may cause to our customers and suppliers due to these changes.”

The wind down comes as Toyota has previously announced that it will reduce its production schedule for February on various days at eight plants in Japan, including assembly lines for its Prius hybrid and Lexus vehicles, the Associated Press reported.

Other vehicles affected by the production shutdown include Toyota’s Corolla, Camry, 4Runner, Land Cruiser, Yaris and Sienta, among others.

It was unclear from Toyota what parts were in short supply, but a semiconductor chip shortage has been plaguing automakers forcing plant shutdowns across the industry. In Japan, auto plants have been subject to lockdowns and operational suspensions due to COVID-19 safety measures.

Toyota’s vehicle production will decrease by 47,000 units due to the plant suspension, falling short of its 9 million vehicles targeted for the fiscal year, the company said, as reported by the AP.

The chip shortage has wreaked havoc across the auto industry, costing manufacturers as much as $50 million a week, Matteo Fini, vice president, who analyzes auto supply chains and technology for IHS Markit, told the AP.

“The recent experience of these input shortages is forcing automakers to go against everything they have done in the past 30 years when it comes to supply chain management. Carmakers are now considering taking on inventory for certain parts because, in relative terms, it costs peanuts to have that inventory compared with having a line stoppage,” he told the news outlet.

As of Friday at 11 a.m. EST, shares of Toyota were trading at $200.45, down $1.02, or 0.51%.