Yet another company has succumbed to the ongoing global chip shortage. Toyota has announced that it is reducing its global production output for September by as much as 40 percent.
From its previous target of 900,000 cars for next month, Toyota is aiming for just 540,000 vehicles instead. Many of its factories all over the world, including the US, Canada, and Mexico, will be idle. The company, however, believes it can still reach its 9.3 million target for the year.
This is the first time that Toyota, currently the world’s largest automotive manufacturer, is scaling down its production amid the shortage. It was able to keep its production going by amassing chips or semiconductors as part of the business continuity plan it adopted a decade ago.
Other car manufacturers have already felt the effects of the chip shortage, with companies such as BMW, Ford, General Motors, and Nissan among many who already announced they had cut down their production.
Source: BBC