According to the Japanese daily Nikkei, on Thursday, Toyota will decrease its car production by 40% in September as its supply chain suffers from a global shortage of semiconductor chips. Nikkei stated that the world's largest automaker planned to produce approximately 900,000 vehicles next month, but this number has been adjusted to around 500,000, without citing sources.
The spread of the more infectious Delta variant of the Coronavirus in Southeast Asia has also impacted Toyota's acquisition of car parts, according to the report. Toyota did not immediately comment on this information.
Competitors of the Japanese giant have also been forced to slow down or temporarily halt production due to the shortage of microchips, which are essential for the electronic systems in modern vehicles. Companies have suffered from a low supply of these chips since the end of 2020. When the pandemic broke out, automakers reduced their orders and chip manufacturers shifted production to consumer electronics as demand for work-from-home and entertainment equipment increased, leaving car manufacturers in a difficult position amid rising demand for vehicles.
The Japanese newspaper reported that starting early next month, Toyota will suspend operations at several Japanese factories and reduce production in North America, China, and Europe. The chip crisis and other Covid-19-affected supply chain issues have caused short production stoppages at Toyota's Japanese factories. Earlier this month, the company announced record net profits for the first quarter, thanks to a sales increase from the recovery following the Coronavirus crisis. However, following the newspaper's report on Thursday, Toyota's shares fell by 4.42% to 9,295 yen.
