Toyota intends to cut vehicle production by 40 percent in September. The decision is related to the global shortage of chips. The main competitor of the Japanese concern – Volkswagen is considering a similar step.
The world’s largest carmaker was expected to produce nearly 900,000 cars in September, but that number will eventually drop to 540,000 vehicles.
Volkswagen has warned that it may also cut production in the near future. The company, being the second largest car manufacturer in the world, decided to take such a step earlier this year. “We cannot rule out further changes,” the company’s representative told the BBC.
The value of Toyota shares on Thursday saw the biggest drop since December 2018, losing 4.4%.
The problems caused by the SARS-CoV-2 virus did not bypass manufacturers of integrated circuits, technologically advanced devices necessary for the operation of many of today’s devices. Shortages in the supply of chips have a negative impact on, among others automotive market or electronics production.
Last month, Intel CEO Pat Gelsinger said the world’s worst chip shortage crisis is yet to come.
Pat Gelsinger predicted that the situation would worsen in the “second half of this year” and it would take “a year or two” for production to return to normal.
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