---
title: "Toyota Cutting Global Production by 40 Percent as Chip Stockpile Runs Out"
description: "To this point, Toyota had been mostly unaffected by the semiconductor shortage."
date: "2021-08-19"
modified: "2021-08-19"
authors:
  - name: "Peter Holderith"
    job_title: "Contributor"
    link: "https://www.thedrive.com/authors/peter-holderith"
url: "https://www.thedrive.com/news/42067/toyota-cutting-global-production-by-40-percent-as-chip-stockpile-runs-out"
categories:
  - "News"
  - "News by Brand"
  - "Toyota News"
tags:
  - "Toyota"
---

# Toyota Cutting Global Production by 40 Percent as Chip Stockpile Runs Out

![](<https://www.thedrive.com/wp-content/uploads/images-by-url-td/content/2021/08/toyota-cuts-production-lead.jpg>)
*\<em\>www.thedrive.com</em>*

Toyota, one of the world's largest automakers, has announced it's cutting production by 40 percent next month due to [the ongoing semiconductor shortage.](<https://www.thedrive.com/tech/40589/the-global-microchip-shortage-explained-and-what-it-means-for-your-next-car-purchase>) Although the car company was at first unaffected by the supply chain stranglehold [thanks to a massive stockpile of chips](<https://www.thedrive.com/news/39697/toyota-unhurt-by-global-chip-shortage-after-learning-from-fukushima-nuclear-disaster>), it's now scaling back plans to build 540,000 new vehicles in September rather than the initial goal of roughly 900,000.

Toyota's announcement is the latest in a number of [pandemic-related cutbacks](<https://www.thedrive.com/news/41738/ford-still-has-over-60000-incomplete-vehicles-waiting-for-chips>) from nearly every auto manufacturer. In [a statement,](<https://global.toyota/en/newsroom/corporate/35741389.html>) it explained that 27 production lines in 14 factories worldwide will be stalled in September. For reference, Toyota's 14 factories have 28 total production lines. According to [*Roadshow*](<https://www.cnet.com/roadshow/news/toyota-curtails-vehicle-production-by-40-as-chip-shortage-slams-automaker/>), the automaker's San Antonio, Texas facility will continue to build Tacoma and [Tundra](<https://www.thedrive.com/news/41176/the-2022-toyota-tundra-trd-pro-is-official-with-much-more-aggressive-looks>) pickups without pause.

![message-editor%2F1629389490084-inlinea.jpg](<https://www.thedrive.com/wp-content/uploads/content-b/message-editor/1629389490084-inlinea.jpg>)
**Getty Images**

This marks one of the more concrete statements of mass [plant closure](<https://www.thedrive.com/news/41799/jeep-gladiator-pickup-production-halts-over-chip-shortage>) in the auto industry and stands in contrast to how many others are handling the chip shortage. Companies like GM are [stalling factories](<https://www.thedrive.com/news/39779/all-chevy-camaro-production-stops-due-to-chip-shortage>) and production lines in a fluid manner, and even [de-contenting vehicles](<https://www.thedrive.com/news/41008/gm-drops-auto-stop-start-from-v8-silverados-and-sierras-due-to-chip-shortage>) to keep lines running. Toyota's approach of instituting a massive planned production cut may indicate its supplies ran out much quicker than anticipated.

The Japanese automaker was one of the few car companies with a substantial stockpile of semiconductors leading into 2021. Toyota ordered its suppliers to [hold extra quantities of chips for it](<https://www.thedrive.com/news/39697/toyota-unhurt-by-global-chip-shortage-after-learning-from-fukushima-nuclear-disaster>) following the Fukushima nuclear disaster in 2011. As such, vehicle production has, to this point, been chugging along mostly unhindered for the company.

Toyota's woes are just one in a litany of other supply issues for automakers. Ford has [storage lots full of trucks in need of chips](<https://www.thedrive.com/news/40458/thousands-of-unfinished-ford-super-duty-trucks-are-parked-at-kentucky-speedway-due-to-chip-shortage>) and GM is [struggling to make any of its coupes and sedans](<https://www.thedrive.com/news/41422/chevy-camaro-sales-are-in-a-death-spiral>) as more profitable SUVs get priority; even the company's [full-size pickup production](<https://www.thedrive.com/news/41645/gm-pauses-full-size-pickup-production-as-chip-shortage-rages-on>) has [been affected](<https://www.thedrive.com/news/39868/partially-finished-ford-f-150s-are-being-held-after-the-assembly-line-due-to-chip-shortage>). As far as the chip shortage goes, no one's out of the woods yet.

*Got a tip or question for the author? You can reach them here**: peter@thedrive.com*

## Author
Peter Holderith is a former staff writer for The Drive. He enjoys covering the regular news cycle, writing reviews, and hunting down long features on obscure pieces of automotive history.

### Author social links  
[LinkedIn](<https://www.linkedin.com/in/peter-h-5ba447192/>)  
[Twitter](<https://twitter.com/_baldtires>)