Toyota to cut production in North America in August

Toyota Motor said on Thursday that it expects to see a decline in production of 60,000 to 90,000 vehicles in North America in August, due to an increase in COVID-19 cases, supply chain concerns, and the ongoing semiconductor chips shortage.

The Japanese automaker also said it is expected that further production cuts will take place in September.

The automaker said through July it has lost 65,000 automobiles of expected North American production. The automaker assembled 1.13 million automobiles in the region in the first seven months of the year.

The chip shortage, which has hit automakers worldwide, emerges from a confluence of factors as automakers, which closed plants for two months during the coronavirus pandemic last year, rival against the sprawling consumer electronics industry for chip supplies. A factory fire suffered by Japanese chipmaker Renesas this year is also cited as a reason behind the chip shortage.