Toyota Reducing Car Production

Toyota Motor ($TM@Japan) will reduce global production for September by 40% from its previous manufacturing plans due to the worldwide shortage of semiconductors, dropping output to about 500,000 vehicles. The company cites COVID-19 cases, material price increases, and a chip shortage. Share prices dropped Wednesday. An expected 27 lines in 14 plants in Japan will be impacted, affecting the production of models from the RAV4 to Corolla, Prius, Camry, and Lexus RX. That reduction represents a hit to all manufacturing plants Toyota has across the country except 1. Toyota, up until now, had been relatively unimpaired due to its supply-chain savvy and the strong stock it keeps of key components such as semiconductors.