News
The Iran War Just Caused Collateral Damage to Toyota’s Most Popular SUV
Car makers are beginning to feel the effects of the ongoing conflict in Iran and the de facto closure of the Strait of Hormuz. Among them is Toyota. The business has now informed suppliers that between now and November, it will reduce the number of vehicles produced abroad by about 83,000.
This week, Toyota informed the supply base that the primary causes of the production reductions were declining Middle Eastern demand and rising fuel prices. On the list of models with the largest cuts, the Toyota RAV4 is close to the top.
The manufacturing reductions will also have an impact on cars built on Toyota’s Innovative International Multi-purpose Vehicle platform. The Toyota Hilux, Fortuner, and the new Land Cruiser FJ are some of the models that make use of this platform. The Toyota Probox and Corolla Touring will also be affected by the reduction.
Toyota first reduced manufacturing in Japan by 40,000 cars headed for the Middle East in March and April, according to Nikkei Asia. Additionally, it stopped work on the second line at its Gifu Auto Body facility for one day and halted production on one of the lines at its Tsutsumi Plant in Aichi Prefecture for two days this month.
Nearly half of the 500,000 to 600,000 cars that Toyota normally exports to the Middle East each year are anticipated to be impacted by the disruption, according to Toyota accounting director Takanori Azuma.




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