Toyota Motor has been compelled to suspend production twice in two months at its plant in Tijuana, Mexico, due to local labor shortages impacting output at its suppliers. The production halts occurred in February and March, reducing the output of the Tacoma pick-up truck. These disruptions highlight potential bottlenecks for the world’s leading automaker, which has plans to produce 10 million vehicles this year.
Documents reviewed by Reuters, along with insider reports, confirm that Toyota halted production for a total of 19 days during this period. Besides labor shortages, technical issues at the plant also contributed to the stoppages.
To address the strain, Toyota is collaborating with some suppliers, though many parts makers are struggling to maintain production due to the worker shortage. This situation presents yet another challenge for the Japanese manufacturing giant, which is already grappling with the fallout from a safety test certification scandal at its subsidiary Daihatsu and governance issues at two other group companies.
These scandals have led Toyota to delay the start of electric vehicle (EV) production in the United States by six months, pushing the new timeline to around June 2026. This delay, previously reported by Japanese media, compounds the company’s difficulties as it navigates supply chain disruptions and strives to meet increasing demand for its vehicles.
Toyota Motor North America, the automaker’s subsidiary, continues to experience intermittent production delays due to these supply chain issues. A Toyota spokesperson stated, “To minimize the impact, our teams are working diligently to do everything possible to lessen the inconvenience to our customers.”
In a letter to its North American supplier network in late April, Toyota acknowledged the “frequent production halts” causing “inconvenience and concern.” The letter noted that regular employee turnover at some suppliers had led to a decline in skills, while production capacity had decreased due to issues with personnel, equipment, and material supply.
These supply-chain problems help explain some of Toyota’s recent difficulties in the United States, even as the company sees increased demand for vehicles, particularly hybrids. Toyota is expected to start selling a hybrid version of the Tacoma in the United States this year, indicating a continued focus on meeting consumer demand despite the operational challenges.
The labor shortages and subsequent production halts at the Tijuana plant underscore the broader issue of workforce instability in the manufacturing sector, particularly in regions with high turnover rates.
