Toyota Philippines shrugs off impact of global output cut

A GLOBAL Toyota production cut will not impact Philippine production, Toyota Motor Philippines Corp. (TMP) said.

Toyota Motor Corp. plans to cut its global production for September by 40%, Nikkei Asia reported. The car maker in July planned to build under 900,000 vehicles for next month, but the figure has since been cut to 500,000 units as the company rolls back production in Japan, North America, China, and Europe.

TMP First Vice-President Rommel R. Gutierrez said in a mobile message on Thursday that the reduction will not have an impact on the local business.

The global company has been impacted by the global semiconductor shortage, while a Southeast Asian outbreak of the Delta coronavirus disease 2019 (COVID-19) variant slowed auto parts procurement, Nikkei Asia reported.

The global shortage in semiconductors, the chips used in electronic devices and cars, started last year as lockdowns caused factory shutdowns, but the shortfall has since been exacerbated by increasing consumer demand.

Local car sales in July went up by 4.7% to 21,499 units year on year, but the car manufacturers industry group is anticipating a slowdown in sales this month due to the tighter lockdown restrictions.

TMP continued to have the highest sales with 10,763 units sold or 50% market share. — Jenina P. Ibanez

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