SHANGHAI- The Toyota company announced this week that it will stop its Japanese production lines for May due to lockdowns across Shanghai, China.
The new policy will begin on Monday of next week and continue to Sunday of that same week.
Tesla and Toyota are now two major car manufacturers negatively affected by the lockdowns in China. Toyota announced that due to “the lockdown in Shanghai, China, [they] have decided to additionally suspend operations of 14 lines at 8 plants in Japan from May 16 (Mon) to May 21 (Sat).” The city is currently in its sixth week of lockdowns, making it incredibly difficult to move employees and manufacturing materials.
About 50,000 vehicles will have to be cut from their plans to produce 750,000 cars for May due to the sudden production halt. As a result of the production disruptions from China the company reported slumped quarterly profits on Wednesday. Their reported shares were 4.5% lower than stock expectations.
Tesla, like Toyota, has also put a stop to their production in Japan due to not being able to get crucial materials from neighboring China.
The average production level at Tesla’s Shanghai plant is around 1200 cars per day. However, they plan to manufacture less than 200 on Tuesday.
Tesla’s Chinese sales margins have fallen over 98% between March and April, however CEO Elon Musk believes that the Chinese lockdowns will not impede on the company’s business efforts in the coming weeks.
See also from Business News:
