Benzinga | Sep 10, 2021 08:22AM EDT

Toyota Cuts Production Outlook Owing To Chip Shortage

* Toyota Motor Corp (NYSE:TM) slashed its production guidance by around 3% to 9 million units for FY22 due to Southeast Asia's covid resurgence.

* The automaker had previously planned to produce 9.3 million units.

* Toyota slashed the September output by 70,000 units and October by 330,000 while sticking to its FY22 operating profit of 2.5 trillion yen ($22.7 billion).

* A decline in operations at multiple local suppliers and tighter semiconductor supplies led to the adjustment. While the current outlook appears robust, concerns loom from November onwards.

* In August, Toyota had cautioned against production cuts due to the semiconductor and component crisis.

* Toyota sought substitute parts to meet the global demand for cars.

* Maruti Suzuki India Ltd sees a volume drop by about 40% of normal in August, Bloomberg reports. Suzuki Motor Corp (OTC:SZKMY) is shrinking vehicle production by 20% in September in Japan. Renault SA (OTC:RNSDF) plans to halt assembly plants in Spain for up to 61 days before the end of the year.

* Price Action: TM shares closed higher by 0.04% at $180.07 on Thursday.