Toyota to slash September production due to global chip shortage: report
The automaker had planned to make a little under 900,000 cars. that number has been cut to about 500,000
Toyota Motor is slashing its global production for September by 40% from its previous plan due to the worldwide shortage of semiconductors, according to Nikkei Asia.
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Toyota shares were lower by 4% in the premarket.
The automaker had planned to make just fewer than 900,000 cars. That number has been cut to about 500,000, resulting in a temporary production shutdown as several domestic factories.
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Production in North America, China and Europe will likely be scaled back by tens of thousands of units.
In addition to the chip crush, the resurgence in COVID-19 cases has disrupted parts supplies and production at car companies.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| TM | TOYOTA MOTOR CORP. | 169.67 | -2.89 | -1.68% |
Last September, as the automaker started to recover from the initial effects of the coronavirus pandemic, Toyota produced 840,000 units.
Toyota had no immediate response to a request by Nikkei for comment.
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Toyota is the world's largest automaker by sales volumes.