(WSJ) Toyota Motor Corporation has announced it will reduce output by 40% in September as global shortages in semiconductors bite. Shares fell 3.5% on the announcement.
Toyota’s announcement comes amid a surge in Covid-19 infections that has affected chip production in Southeast Asia, with countries like Malaysia under lockdown since June.
Toyota has announced that it will close some of its plants like the Tsunami plant from 1st to 17th September which is expected to disrupt most models.
The automaker is planning to reduce its factory output by between 40-60% in North America.
Toyota said the downscaled production will not affect employment.
Toyota’s planned output cut is expected to leave the automaker with 60,000-90,000 fewer vehicles in the market, with the disruptions likely costing another 80,000 in North America in September.
7203: TYO is down -4.09%.
