Toyota to slash September production due to global chip shortage: report

The automaker had planned to make a little under 900,000 cars. that number has been cut to about 500,000

Toyota Motor is slashing its global production for September by 40% from its previous plan due to the worldwide shortage of semiconductors, according to Nikkei Asia.

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Toyota shares were lower by 4% in the premarket.

The automaker had planned to make just fewer than 900,000 cars. That number has been cut to about 500,000, resulting in a temporary production shutdown as several domestic factories. 

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Production in North America, China and Europe will likely be scaled back by tens of thousands of units.

In addition to the chip crush, the resurgence in COVID-19 cases has disrupted parts supplies and production at car companies.

Ticker Security Last Change Change %
TM TOYOTA MOTOR CORP. 177.75 -0.92 -0.51%

Last September, as the automaker started to recover from the initial effects of the coronavirus pandemic, Toyota produced 840,000 units.

Toyota had no immediate response to a request by Nikkei for comment.

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Toyota is the world's largest automaker by sales volumes.