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Toyota Will Cut Worldwide Production 40% in September

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Toyota is the latest automaker to experience issues as a result of the semiconductor shortage, cutting production 40% in September.

The global semiconductor shortage has impacted a variety of industries, but the automotive industry has been hit particularly hard. Toyota is the latest company to have to alter its plans as a result.

According to BBC, Toyota initially planned on producing 900,000 vehicles in September, but is scaling that back to a mere 540,000. Toyota had been relatively insulated from the shortage, compared to its rivals, as a result of its decision to take more proactive steps to stockpile components and protect its supply chain. The decision was made in the aftermath of the Fukushima disaster.

It would seem Toyota may have exhausted, or be close to exhausting, its stockpile of semiconductors. With COVID cases experiencing a resurgence, the pandemic is putting renewed strain on companies and manufacturers, and would seem to indicate there is no immediate relief in sight.