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July 13, 2024
Toyota Shutting Down Czech Factory The Whole February Due To Supply Issues


Supply issues continue to affect the automotive industry. In fact, many automakers reported a decline in sales for 2022 due to production disruptions caused by inconsistent supplies. Now, Toyota has to deal with more supply problems and has taken the unprecedented decision to close its plant in the Czech Republic for the entire month of February as a result.

The factory in Kolin, about 37 miles (60 kilometers) east of Prague, currently produces the Aygo X and Yaris, and last year, its output increased by roughly 35 percent to 202,255 assembled cars. Toyota took full ownership of the production site in 2021 and ever since, it has invested more than $200 million in its expansion. Before 2021, the plant was owned by Toyota and the PSA Group on a joint venture principle. 

Toyota doesn’t go into details regarding the nature of the supply issues – we don’t know whether they are related to the continuing global chip shortage or something else. “Due to a shortage of components in the supply chain, we will be forced to halt production temporarily from January 31,” Tomas Paroubek, the plant’s spokesman, told Automotive News earlier this week.

Toyota’s planned global production volume for February is expected to be approximately 750,000 units, of which about 300,000 units will be built in Japan and 450,000 units at other plants around the globe. In addition to its Czech plant, the automaker will have to pause production at the Toyota Motor Corporation Motomachi Plant in Japan for two days. This is where the GR Yaris and GR Corolla performance models are manufactured.

Earlier this year, Toyota announced it had to make a number of changes to its production plan for 2023. The revised plan forecasts up to 10.6 million Toyota vehicles will be assembled this year. However, the company has set a baseline production volume with a downward risk fluctuation range of approximately 10 percent. 



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