Society

Toyota to cut global output by 40% in Sep.

Aug 20 (NHK) - Toyota Motor has announced that it will reduce global production for next month by 40 percent from its previous plan. It cited parts shortages stemming from the spread of the coronavirus.

Toyota said on Thursday that it will suspend September production at overseas factories and 14 plants in Japan to cut output by 360,000 units. Some production lines will be closed for the entire month.

The firm is facing difficulty securing parts from Southeast Asian suppliers that have suspended operations amid the surge in coronavirus cases. Shortages of chips are another factor.

Two other Japanese automakers -- Honda Motor and Nissan Motor -- also suspended some production for the same reasons.

Vehicle sales have been brisk in the United States and China, where demand has rebounded sharply thanks to progress in coronavirus vaccine rollouts.

Analysts say carmakers hoping to capitalize on the trend need to put their production lines back on track quickly. One possible strategy is consolidating their supply chains.

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