Toyota Motor Forced to Stop Production Due to Labor Shortages

( – Toyota Motor had to stop production at a Mexico plant due to labor shortages over the course of two months. This has become a choke point for the automaker who has a goal of pushing out ten million vehicles this year.

Toyota closed down production for a total of nineteen days during of February and April at its plant in Tijuana, Mexico. Toyota is still having issues with parts makers as they struggle with labor shortages. Supply interruptions, as well as safety certification issues, have prompted Toyota to delay the making of electric vehicles in the United States.

Toyota’s subsidiary said, “Toyota’s North American plants continue to face intermittent production delays due to supply chain disruptions. To minimize the impact, our teams are working diligently to do everything possible to lessen the inconvenience to our customers.”

In the U.S. they were expected to roll out a hybrid version of the Tacoma but according to Yoichi Miyazaki, Toyota’s chief financial officer, it’s unlikely. “There were some operational issues involving parts makers, and it became clear in the fourth quarter that production was not going as expected,” he said

With all of the delays and issues that they have run into over the past year, they have seen a twenty percent decrease in their profits over the year; they had an operating loss of over twenty-seven million dollars in North America.

One of the sources who works at a supplier claimed that there was difficulty in keeping staff. “Employees are frequently changing jobs in search of higher salaries. It has become difficult to secure personnel, and we can no longer maintain the required production volume,” they said.

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