Toyota to cut global output by 40pc due to Microchip Crunch : Reports

Moscow, Aug 19 (SPUTNIK) Toyota will cut global vehicle production by 40% in September as global microchip shortages constrain chip supply to automakers, news outlets reported on Thursday.
Japan’s biggest automaker said it planned to reduce worldwide output by 540,000 vehicles, more than the initially anticipated 360,000, the national news agency Kyodo reported.
The company announced in a statement that production at all but one of 28 lines at its 14 domestic plants would be paused for weeks between late August and mid-September.
The global automotive industry slashed production due to a shortage of semiconductors, which are critical for the production of a variety of electronic devices. The crunch stems from the spread of COVID-19 in Southeast Asia, a key microchip production hub.

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