Toyota to put production of 20,000 cars on hold in Jan.

© Kyodo News

Toyota Motor Corp. said Monday it will partially halt operations at five factories in Japan in January, causing a delay in the production of about 20,000 cars in total, as it continues to struggle with the procurement of auto parts due to the COVID-19 pandemic as well as a shortage of chips.

The planned halt comes after the company stopped some production lines this month at 6 domestic factories, affecting output of about 22,000 cars. The carmaker will stick to its global annual output target of 9 million cars for the year ending in March 2022 despite the halt, it said.

A shortage of auto parts and semiconductors is posing a big challenge to carmakers worldwide as the pandemic has forced parts factories in Southeast Asia and elsewhere to shut down and shelter-in-place policies around the world caused chip demand for electronics to soar, making it harder for companies like Toyota to secure supplies.

The cars affected will include the Harrier and the RAV4 sport utility vehicles, the company said.