Toyota to reduce production in Japan and North America due to chip shortage

Toyota to reduce production in Japan and North America due to chip shortage


Toyota’s supply chain has been disrupted | Photo by Artur Widak/NurPhoto via Getty Images

Toyota said Thursday that it would reduce production in Japan and North America due to a shortage of semiconductor chips, a sign that even the best-run supply chains are being affected by the shortage.

In Japan, the automaker will reduce production by 40 percent later this month and into September, which will affect most of its production lines, the The Wall Street Journal reported; planned reductions in North America will be between 40 and 60 percent in August. The reductions mean Toyota will produce between 60,000 and 90,000 fewer vehicles.

“Due to COVID-19 and unexpected events with our supply chain, Toyota is experiencing additional shortages that will affect production at most of our North American plants,” the company said in a…

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