Toyota cuts output as chip shortage continues and COVID resurges

Reuters has reported that Toyota Motor Corp. is cutting global production for September by 40% from its previous plan, equating to a reduction of about 360,000 vehicles. The cuts, brought on by the ongoing chip shortage, affect 14 factories in Japan, the U.S., Europe, China, and other Asian countries.

The automaker shut down assembly lines at some Japanese factories in July and August because of a surge in COVID-19 infections in Vietnam, which constrained the supply of parts. It also suspended production at three factories in Thailand because of a pandemic-related parts shortage, according to Reuters.