Toyota to slash September production due to global chip shortage

Shares in Toyota plunge to a seven-month low as it says it will cut production by 40%

Toyota is the world’s largest carmaker by sales volumes

Toyota is the world’s largest carmaker by sales volumes

 

Toyota will reduce global production for September by 40 per cent from its previous plan due to the worldwide shortage of semiconductors, the Nikkei business daily reported on Thursday.

Shares in Toyota plunged to a seven-month low on the news.

The carmaker had been aiming to make a little under 900,000 cars, but has reduced that to about 500,000, according to the report.

Toyota had no immediate response to a request for comment.

A resurgence in Covid-19 cases has disrupted parts supplies and production at car companies, compounding a months-long pandemic-fuelled chip crunch.

Toyota, the world’s largest carmaker by sales volumes, said his month it was facing an unpredictable business environment due to fresh Covid-19 cases in emerging countries, semiconductor shortage, and soaring material prices.

- Reuters