Toyota is making production adjustments considering the effects of COVID-19 and a decline in demand for new vehicles, globally.
From early May, Toyota will make gradual adjustments in production operations at all its plants in Japan. Production will be halted specifically on May 1 and May 11. Operations would be carried on alternative dates. Also, non-operating days will be added and operation time will be switched to single shifts from double shifts from May 12 for some plants.
Among Toyota’s 28 plants, five will be suspended, three will observe reduced operational shifts. The company has decided to extend the period of suspension to two of its previously idled plants by a total of seven more days. These plants were scheduled to re-open on April 15. The company has stated that operation plans could vary as per changes in vehicle demand and supply of parts.
Japan is facing a huge dip in demand for steel amid the COVID-19 pandemic. Major construction companies have curtailed their projects in the country and many carmakers have shut operations and many others are adjusting to slump in demand by cutting production.
Nippon Steel and JFE Holding have planned to shut 5 blast furnaces which has resulted in a 25pc drop in their steel capacity. Japan is struggling with a sharp drop in steel demand and if the pandemic continues any longer, steel production could fall further.