Toyota, Volvo Cut Production For Same Reasons With Differing Causes

Two automakers have announced a halt in production due to a parts shortage. However, the reasons for their shortages differ from each other.

Volvo has announced a "worsened production situation" in line with the current chip shortage due to the pandemic. The Geely-owned, Swedish automaker said that this is just temporary but would last towards the end of the first half of 2022. Of note, the production pause is due to the lack of a specific type of semiconductor.

Volvo notes that it saw a gradual improvement in the supply of semiconductors and production output month over month. However, there's a temporary deviation from that trend which led to this decision to hit the pause button. The company also said that this situation is not connected to the current situation in Ukraine.

Because of that, Volvo has adjusted its goal for 2022, now expecting just a marginal sales growth in relation to 2021, compared to its previous prediction.

Toyota, on the other hand, has announced its own version of temporary production stoppage for a different reason. Due to the earthquakes that occurred in the Tohoku region on March 16, the Japanese automaker's suppliers were affected. As a result, there was a parts shortage that prompted Toyota to adjust its production output.

Of note, Toyota's production pause has started as early as March 21 and will occur up to March 26 depending on the plants. There are 18 lines at 11 plants out of 28 lines at 14 plants that were affected.

Affected vehicles include the Toyota GR Yaris, Mirai, Yaris Cross, RAV4, RAV4 HEV, and all Lexus models.

"While prioritizing the safety of the people and the recovery of the region, we will continue to work with our relevant suppliers in strengthening our measures against the parts shortage and make every effort to deliver vehicles to our customers as soon as possible," Toyota said.