Toyota plans to shorten the maximum operating hours for its plants in Japan by 30 minutes per day, starting in the fiscal year 2024 that begins in April, people familiar with the matter said Friday.
The move is designed to ensure product quality by allowing employees to work in a more flexible schedule following a series of certification irregularities at its group companies such as Daihatsu and Toyota Industries.
Employees in Toyota's plant usually work in two shifts a day, with eight hours of regular work plus overtime. The automaker will shorten the upper limit of the overtime part, set for each production line, by 30 minutes.
The company makes nearly 15,000 vehicles per day in Japan. Many plants have been operating at full capacity due to growing demand after the COVID-19 pandemic and the easing of semiconductor shortages. Suppliers are also facing increasing burden as a result.
Toyota will cut its daily domestic production goal to some 14,000 units in fiscal 2024, while maintaining its global output target of 10.3 million units for the year.
The company is also expected to review its vehicle-development plans as tight schedules are partly blamed for the scandals involving Daihatsu and Toyota Industries.