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Facing an ongoing shortage of computer chips and lingering COVID-related economic disruptions, Toyota will cut its global production next month to 750,000 vehicles, a reduction of 17 percent.
The company already has announced a 20-percent domestic production cut for April, May, and June due to shortages of materials and supplies.
Toyota also will trim 10 percent from its production worldwide in May and June, the company announced in what it called “an intentional cooling-off period” to ease strains on its suppliers.
TREND FORECAST: The shortages Toyota is experiencing will persist throughout the vehicle industry at least into next year.
While lessening demand eases materials’ shortages and may ease price increases for them, it also means fewer jobs, fewer hours for many workers who remain, reduced corporate revenues and profits, higher prices for the vehicles that can be made, and smaller GDPs for countries where cars and their component parts are made.
Toyota’s planned production cuts are harbingers of Dragflation, one of our Top 2022 Trends.