Toyota cutting Canadian production due to trucking protests
Toyota said on Wednesday that trucking protests in the U.S. forced it to cut production at its Canadian plant. This unexpected development has complicated the Japanese automaker’s adjustment to the trade war between Washington and Beijing. The production cut at its Canadian plant, which builds Corolla compact cars, shows supply chain disruptions between the world’s two largest economies. The automaker said the supply chain disruptions make it difficult to respond to the tit-for-tat trade war between Washington and Beijing. It is unclear how long the production cut will last.
Trucking protests have caused a shortage of freight deliveries to its Canadian plant, forcing Toyota to cut production at the facility.
Toyota said it did not expect its plants in Ontario to produce vehicles for the rest of the week. The reason is supply problems arising from a trucking protest. The protests, which began last week in Quebec and have spread to other parts of Canada, have caused a shortage of trucks needed to transport vehicles from Toyota’s plants to dealerships. As a result, some cars produced at the Ontario plants could not reach dealers. The company said that it had caused a production cut back.
Overview of Toyota and its latest challenges
Over the past month, Toyota has faced significant supply chain, weather, and COVID-related challenges in North America. These issues have caused a shortage of materials, which impacted the production and supply levels at their North American plants. The company is working hard to address these challenges, and its plants will continue to operate as much as possible. The company said they anticipate improving its supply chain in the coming weeks.
Ontario is the home of two of Toyota’s vehicle factories. The Ontario plants build the RAV4 and its hybrid version and the Lexus RX 350 and the RX 450h. The RAV4 and RX 350 are on the same platform, so they have many features in common. The hybrid RX 450h shares a platform with the gas-powered RX 350, but its powertrain is unique.