Recently, Toyota Motor Corporation announced that its vehicle production faced challenges due to parts shortages in its homeland. This time, even rival automaker Honda is affected by manufacturing disruptions as well, with increasing numbers of the Omicron variant forcing the two car brands to stop production in Japan.
Rising cases of the Omicron variant are forcing Japanese automakers to temporarily reduce output
According to a report from Nikkei Asia, Toyota will suspend 21 production lines at its 11 Japanese plants. Around 47,000 vehicles will reportedly be covered by the temporary suspension, affecting Toyota models like the Land Cruiser, which is already struggling with a long four-year waitlist due to production issues.
Toyota’s small car division, Daihatsu Motor, has announced that it halted its production as well. This follows a report that about 30 workers at a plant in Shiga Prefecture tested positive for COVID-19. Also, the company shut down its head office and plant in Osaka Prefecture due to a spread of cases at one of its suppliers.
The production stoppage will likely take a heavy toll on the Land Cruiser's sales
Meanwhile, Honda has already reduced its production output by 10 percent at its Yorii plant in Saitama Prefecture this January. The company is also expecting to lower its production volume for passenger cars at its Suzuki Plant in Mie Prefecture by 10 percent.
Other Japanese automakers have taken their own steps to address the situation. Suzuki has cut down its own production capacity to 70 percent, while Nissan also reduced its output since December 2021.
Automakers will suspend their operations to prioritize safety
In the Philippines, the production stoppage could impact the arrival of various models sourced from Japan, including the Toyota RAV4, Toyota Land Cruiser, and Honda Odyssey. Fortunately, Japanese automakers are optimistic that the situation will soon get better. For instance, Honda is confident that it will resume normal operations at its Yorii plant by next month.
The World Health Organization (WHO) reports that Omicron won’t be the last COVID-19 variant. Considering that the main causes of the production crisis among automakers are the shortage of semiconductors brought about by the pandemic, it seems like the industry’s anticipated recovery would have to take more time.
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