Toyota and Volvo Reduce Production for the Same Reasons, But With Different Causes

Toyota and Volvo Reduce Production for the Same Reasons, But With Different Causes
All Toyota cars in Japan have been affected. Volvo has adjusted its goal.

Two automakers announced a halt to production because of a shortage in parts. The reasons for the shortages are different from one another.

Volvo announced that it is experiencing a “worsened manufacturing situation” due to the current shortage of chips in response to the pandemic. According to the Swedish automaker, Geely owned, this temporary situation would end towards the second half of 2022. The lack of a particular type of semiconductor caused the production pause.
Toyota and Volvo Reduce Production for the Same Reasons, But With Different Causes

Volvo noted that there was a steady improvement in semiconductor supply and production output month-over-month. There was a temporary dip in the trend, which led Volvo to decide to pause. This situation was not related to the current situation that is occurring in Ukraine, according to the company. Volvo now expects a slight sales increase in 2022 compared to the prior prediction.

Toyota and Volvo Reduce Production for the Same Reasons, But With Different Causes

Toyota has, however, announced its own temporary production freeze for a different reason. The Tohoku earthquakes of March 16th caused severe damage to Japanese suppliers. Toyota had to adjust its production output due to a shortage of parts.

Toyota’s production pause began as early as March 21st and will continue until March 26, depending on the plants. Out of the 28 lines at 14 affected plants, there are 18 lines at 11 plants. The Toyota GR Yaris and Mirai are affected vehicles. Toyota stated, “While prioritizing safety and recovery in the region,”