The Japanese automaker produced 820,000 vehicles in November, according to Friday’s announcement, and December output is planned at 800,000.
Accounting for January-March production plans disclosed to parts suppliers, global output for the fiscal year through March 31 would total nearly 9.2 million units.
Production estimates come to 900,000 units for February and 1 million for March, making up for lost output in the fall. But with lingering concerns about chip supplies and labour, Toyota’s ability to hit the target will come down to the wire.
Toyota downgraded its fiscal 2021 production plans from 9.3 million vehicles to 9 million in September. Yet the automaker still aims to turn out more than 9 million autos.
After severe parts shortages undercut global production in September and October by 30% to 40%, output recovered almost to planned levels in November.
Toyota confirmed with labour representatives this month that 1,000 employees would be sent in to help at factories.
For production to top 9 million vehicles, monthly output will need to ramp up to roughly 1 million units, comparable to the highest levels to date. Engineers, administrative staffers and others will be dispatched to address the shortage of factory workers.
Parts suppliers also are struggling with a labour shortage. Unable to attract workers, one supplier considered installing automated equipment in preparation for the higher volume in February and March.
Yet the company was told that delivery of the equipment would be delayed because of a lack of semiconductors.
Toyota’s push to meet its full-year target faces other obstacles as well. Plans to operate on off days in January were scrapped due to unreliable supplies of wire harnesses, semiconductors and audio components.
Delays in chip shipments from Southeast Asia in September and October sharply curtailed output. Toyota’s effort to boost production remains hampered by lingering issues with suppliers from the region and a strained logistics network in Japan.
“To be honest, we would not be able to catch up considering our monthly output capacity,” an executive at a parts supplier said of the January-March plans. “But we’ll somehow manage with the inventory built up from the September-October lull,” the executive said.
The omicron variant of the coronavirus has yet to directly affect Toyota’s plans, but the automaker will be walking a fine line in its bid to claw back lost production heading into the new year.