Toyota has avoided any severe production halts as a result of the chip scarcity thus far. This issue, which has plagued almost every other carmaker, has now reached Toyota, and it intends to take over 40% of the firm's worldwide output next month when the business idles plants in the United States, Canada, Mexico, and other areas of the world.
Toyota has stated that it may lose up to 360,000 cars globally by September. The parent business of Toyota North America expects 80,000 job losses in the area. That is a significant number of vehicles, however, the manufacturing halt does not affect all models.
In terms of models, trucks continue to reign supreme, and Toyota intends to maintain manufacturing at its Texas plant that manufactures the Tacoma. Toyota is also preparing the plant to begin production of the next-generation Tundra.
This is the company's first significant reduction in output since the semiconductor shortage began impacting car manufacturing at other manufacturers earlier this year.
Toyota has also paused manufacturing of the new Land Cruiser 300 from September 3 to September 30 due to the idling. The chip shortage continues to wreak havoc on the global auto industry, as manufacturers negotiate a severely restricted semiconductor supply chain.