Toyota To Reduce Output Target To 540, 000

Toyota plans to slash its production by 40 percent next month amid a global chip shortage.

Japan’s largest car maker initially planned to make around 900-thousand vehicles in September, but now the company has reduced its output target to 540-thousand.

Cuts will be made at 14 plants in Japan, with the rest at overseas factories, including those in the U.S., China and Europe.

Toyota’s rivals, such as General Motors, Ford, and Nissan have already scaled back production in the wake of the global chip crisis.