Toyota to Reduce Global Production by 40% due to Chip Shortage

Toyota announced that it would reduce its worldwide vehicle production by 40% in September due to the ongoing global microchip shortage.

Toyota initially planned to produce 900,000 units for September last July but cut it down to around 500,000 due to parts shortages brought upon by the COVID-19 pandemic. 

Compared to last year’s September output of 850,000, Toyota would be working way less than its pre-pandemic capacity.

Among those affected by the reduction are the Takaoka plant in Aichi Prefecture and overseas pants in  North America, China, and Europe.

“As far as we know we don’t see any impact on UK production” added Toyota UK. 

Toyota, admitted this month it was facing an unpredictable business environment due to new COVID-19 outbreaks worldwide, semiconductor shortages, and rising material prices.


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