Asian Tech Press (SEP 16) -- According to media reports, Toyota and Nissan have asked their suppliers to raise chip inventory levels due to the global chip shortage.

Toyota has begun asking some of its suppliers to boost chip inventory levels from the traditional 3 months to 5 months. Nissan is considering increasing its chip inventory from 1 month to more than 3 months. In addition, Suzuki Motor also asked parts manufacturers to retain several months of inventory levels.

Toyota will cut global vehicle production by 40 percent in September from an initial plan of nearly 900,000 units due to chip shortages and the disruption of the supply chain by the Covid-19 outbreak in Southeast Asia. In addition, the company will also scale back its production in North America, China and Europe starting in early September.

In August, a Nissan plant in the U.S. state of Tennessee was closed for two weeks due to a chip shortage exacerbated by an outbreak in Malaysia.