Toyota’s production hit by chip shortage, again

Production and Toyota’s factories will decrease in September and October. Photo: Toyota

Toyota will slash its global production again next month by 330,000 units, as the pandemic and global shortage of automotive microchips continue to bite.

The total hit represents a 40 percent cutback from Toyota's original October production plan. The Japanese brand said it will also take a bigger hit than expected in September, and expects to lose another 70,000 units this month, says Europe Automotive News.

Japanese car companies have already had to cut production this month because of difficulties finding semiconductors and other components as the pandemic disrupts manufacturing around the world and drives up demand for chips from consumer electronic device makers.

Toyota said it would try to make up for lost production in order to meet a 9.3 million vehicles target in the year ending in March 31. 

Other Japanese automakers that have struggled to overcome the shortage in components include, Nissan, Honda, Suzuki, and Mazda, says Europe Automotive News.