Toyota could stop domestic production due to steel shortage

Toyota is currently facing a steel shortage that could cause a production halt later this month.

An explosion at an Aichi Steel factory is about to cause some major problems for the world’s biggest car manufacturer that assembles approximately 40 percent of its cars at home in Japan. The steel shortage is expected to have an impact on Toyota’s output as the supplies at its domestic plants will last until February 6. In order to avoid running out of steel parts, the company has decided to eliminate the upcoming overtime and weekend shifts.

Toyota mentions it will closely verify the supply inventory on a daily basis and is going to figure out what to do according to the available quantities. The blast at the Aichi Steel factory on January 8 could have serious repercussions on Toyota’s car output in Japan where last year it made a total of four million units and about 46% of those cars were exported.

In 2016, Toyota aims to make a total of 10.2 million cars which would represent a minor increase compared to last year when it delivered 10.15 million units, including Daihatsu and Hino Motor trucks. The coast is clear for Toyota to grab the sales crown for the fifth time in a row taking into account the ongoing Dieselgate at the Volkswagen Group is taking its toll as far as sales numbers are concerned.

Source: Toyota

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