Amid some good restart news, automaker production cuts keep on coming.
Facing low demand, Toyota was expected to cut May vehicle production in Japan by about half from the level expected at the end of March, according to Nikkei, cited by SeekingAlpha which noted the automaker was expected to reduce output at all 18 assembly plants in Japan.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
"The lack of prospects for recovery in the North American market is a major reason behind the domestic production cut," a Toyota source told Nikkei.
The move will raise a bigger question, the reports said.
With more production cuts expected later, Toyota would likely fall short of annual domestic output of 3m vehicles, described as the minimum for maintaining manufacturing capabilities and jobs.
A separate report said Toyota last week extended the suspension of two plants in Aichi Prefecture by a further seven days until 28 April. This followed an announcement earlier this month that five plants would be shut down for various lengths of time throughout the month to adjust to falling global vehicle demand.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataFurther temporary shutdowns were planned for May, with some plants reduced to a single shift and others to be shut down entirely.
