Chip Shortage: Toyota to Cut Global Production by 40%

upstart writes:

Chip shortage: Toyota to cut global production by 40%:

The world's biggest carmaker had planned to make almost 900,000 cars next month, but has now reduced that to 540,000 vehicles.

Volkswagen, the world's second-biggest car producer, has warned it may also be forced to cut output further.

The Covid pandemic boosted demand for appliances that use chips, such as phones, TVs and games consoles.

On Thursday, German firm Volkswagen, which cut output earlier in the year, told Reuters: "We currently expect supply of chips in the third quarter to be very volatile and tight.

"We can't rule out further changes to production."

Toyota's other rivals, including General Motors, Ford, Nissan, Daimler, BMW and Renault, have already scaled back production in the face of the global chip shortage.

[...] New cars often include dozens of microchips but Toyota benefited from having built a larger stockpile of chips - also called semiconductors - as part of a revamp to its business continuity plan, developed in the wake of the Fukushima earthquake and tsunami a decade ago.

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