As part of Toyota Motor Corp.'s first major round of global production cuts since the semiconductor shortage began, North American factories alone will lose up to 170,000 vehicles through September because of the raging COVID-19 pandemic and ongoing supplier disruptions.
This puts more pressure on U.S. dealers who have been enjoying strong sales momentum this year despite historically low inventories. Through July, the automaker's U.S. sales have advanced 43 percent.
Toyota Motor North America said Thursday that the region's losses in August are expected to range between 60,000 and 90,000 vehicles. In a separate announcement earlier in the day by the parent company in Japan, it expects September output in North America to drop by 80,000 vehicles.
The steep cuts in August output will impact all of Toyota's assembly plants in the U.S., Mexico and Canada except for its San Antonio factory, which produces the Tacoma and is preparing to launch the next-generation Tundra.
Globally, the Japanese automaker said that it expects to lose 360,000 vehicles, about 40 percent of its production, in September. Besides North America, the plans will impact Japan, China, other regions in Asia and Europe.