Toyota to cut global production by 40 per cent over chip shortage

AutoExec Summary
Due to the worsening chip shortage and COVID flare-ups in key markets, Toyota will produce 360,000 fewer cars in September, slashing production by 40%. Despite this, the company aims to meet its annual sales and production targets for the 2021/22 financial year. Toyota’s proactive approach to stockpiling parts has helped it weather the chip shortage better than its rivals. The production cuts will affect 14 factories worldwide, with Japan being the most impacted. The global chip shortage has also affected other car manufacturers, leading to supply chain disruptions and temporary closures. Despite the challenges, Toyota remains committed to maintaining its position as the world’s largest car-maker by volume.

Brands mentioned: Toyota, Volkswagen, Ford