Toyota is to slash worldwide vehicle production by 40% in September because of the global microchip shortage. The world's biggest carmaker had planned to make almost 900,000 cars next month, but has now reduced that to 540,000 vehicles.
The Covid pandemic boosted demand for appliances that use chips, such as phones, TVs and games consoles.
Volkswagen, the world's second-biggest car producer, has warned it may also be forced to cut output further. On Thursday, Volkswagen, which cut output earlier in the year, told Reuters: "We currently expect supply of chips in the third quarter to be very volatile and tight. "We can't rule out further changes to production."