Many major cities in China, including Shanghai, are facing a crisis due to lockdowns. Meanwhile, electric car maker Tesla has stopped production at most of its Shanghai plant. Japanese carmaker Toyota has also said it will stop production at its factory. Toyota will stop production at its Japan plant from next Monday. The decision was taken due to a lockdown in China. News from the BBC.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Car manufacturers say there is a huge shortage of semiconductors in the car industry at present. Due to which they have to walk the path of stopping or limiting production. According to a BBC report, Toyota has decided to suspend operations on 14 production lines at six factories in Japan from May 18 to 21.
Earlier, Toyota said it plans to produce about 6.5 million vehicles this month. However, due to the lockdown, the target has been reduced to 50,000. In addition, Toyota’s quarterly profit fell one-third due to global computer chip shortages and lockdowns in various Chinese cities. Shares of the company fell nearly 4.5 percent on the Tokyo Stock Exchange on Wednesday.
The sixth week of severe lockdown is underway in China’s Shanghai province. According to Toyota, it is becoming increasingly difficult to continue production in this severe lockdown. For this reason, the company has decided to stop production.
A Reuters report, meanwhile, said Tesla had stopped production at most of its line at the Shanghai plant to protect parts for its electric vehicles. According to the China Passenger Car Association, Tesla sales in China fell 96 percent in April from a month earlier. But Elon Musk, Tesla’s founder and the world’s richest man, said at an online conference titled “Future of the Car 2022” on Tuesday that China’s lockdown would not be a major issue in the coming weeks. The BBC contacted the Tesla authorities for details. However, Tesla authorities have not commented on the matter.
