Global Chip Crunch Deepens as Toyota Scales Back Output

The delta variant, once again, outpaced Toyota’s efforts to secure semiconductors. The Japanese carmaker cut its expected production for the business year through March 2022 to 9 million units from 9.3 million.

It’s the latest sign that even the world’s No. 1 carmaker, which had weathered the global chip shortage better than its peers in early days of the pandemic, can no longer avoid the turmoil. The virus spread in Southeast Asia has led to a drop in operations at Toyota’s local suppliers, exacerbating the ongoing chip crunch.