Toyota to cut global output in September by 40% – Deeside production to “be adjusted according to demand”

Toyota is reducing its global production for September by 40% from its previous plan, according to Nikkei news.

The report states that Toyota had planned to produce nearly 900,000 vehicles next month but that number has been reduced to around 500,000 units due to a global chip shortage affecting supply chains.

The delta outbreak across Southeast Asia has also been said to be impacting the company’s procurement of auto parts.

The newspaper states the carmaker will “temporarily suspend production lines” at multiple factories in Japan starting early next month.

“Production in North America, China and Europe will likely be scaled back by tens of thousands of units.”

“This will put Toyota’s global production for the month well below that of last September, when demand was beginning to recover from the initial stages of the coronavirus pandemic and Toyota turned out 840,000 units.” Nikkei news says.

Vehicles have become increasingly dependent on semiconductors with some car models can having up to 40 chips, they control things like engine management systems, safety and driver-assistance features such as emergency braking and digital displays.

The demand for laptops, tablets, games consoles and other devices that use semiconductors has been boosted during the pandemic have been forced to work, learn and socialise from home.

A number of motor manufacturers have already reduced production numbers.

Toyota told Deeside.com that it is “going to great lengths to minimise the impact of the semi-conductor supply shortage that is globally impacting the automotive industry.”

“And as such, Deeside production will be adjusted according to demand.”

The Deeside engine plant which employs over 600 people produced nearly a quarter of a million units in 2020.

Deeside currently exports engines and machine components to South Africa, Turkey and Japan and were the first overseas plant to produce Toyota’s class leading hybrid engines.