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Toyota, one of the biggest car manufacturing companies of the world, is planning to cut its September production by 40%. The company originally planned 9,00,000 cars to be manufactured, but now they will be producing only 5,40,000 cars the coming month.
“We plan to reduce our global production by some 40 per cent in September, from just under 900,000 originally planned,” a Toyota spokeswoman told AFP. (The mint)
The competing companies have already been seen to cut down their production in the previous months. Till now Toyota has been able to avoid the cut in production but the shortage in the chips is making them take this harsh step.
The cut in production is witnessed because of the shortage of microchips which are essential for the electronic systems of modern cars. During the Covid-19 pandemic, the demand for electronic devices such as mobiles, tablets, laptops saw a huge increase which led to future shortage of the chips or semiconductors.
The cut would mostly be seen in Asian factories as coronavirus cases are again witnessing a surge in numbers. The affected factories would mostly be from Japan which include 14 factories that used to built together RAV 4 and Harrier crossovers, Corolla and Camry Sedans. The UK factories will not face any cut in production for the time being. The cut will be seen in Asian region only.
Till now, 40% of the production is being decided to cut off but the producers are not sure whether this will be the only cut that they will be making. Further cuts will totally depend on the availability of chips for the cars.
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