Overview
- Toyota told suppliers this week it will trim overseas production by roughly 83,000 vehicles through November to match sharply lower export demand.
- The largest reductions focus on high-volume export models, notably the RAV4, IMV-platform trucks and SUVs such as the Hilux, Fortuner and Land Cruiser FJ, plus Probox commercial vans and Corolla Touring wagons.
- Toyota and multiple reports pointed to a near-blockade of the Strait of Hormuz, weaker Middle East sales and higher fuel costs as the drivers that have collapsed Japan-to-Middle East shipments.
- Parts makers are already warning of material shortages for oil-derived resins, naphtha chemicals and paint thinners, and Toyota estimates the disruption could cost about ¥670 billion while supplier Denso expects roughly ¥45 billion in impact.
- To limit the effect on output and customers, Toyota is ramping Prius and other hybrid/EV production and is exploring greater use of overseas plants to reduce reliance on vulnerable Japanese shipping lanes.