Toyota plans to cut global vehicle production by 40 percent in September to about 500,000 units, down from nearly 900,000 units originally planned, as chip shortages and impact on the supply chain in Southeast Asia due to the COVID outbreak.

The production lines at various Japanese plants, including the Takaoka plant in Aichi Prefecture, will be suspended from the beginning of September. Output in North America, China, and Europe could be reduced by tens of thousands of units.

Toyota has suspended assembly lines at some plants in Aichi Prefecture from late July to early August due to a surge in Covid-19 cases in Vietnam, supply chain tensions, and difficulties in sourcing parts. The company also suspended some production lines at its Takaoka plant earlier this month due to chip shortages.

Toyota Motor refused to comment on the news. Earlier this month, Toyota kept its operating profit forecast for the current fiscal year unchanged at 2.5 trillion yen, mainly considering the uncertainty brought about by the epidemic, chip shortages, higher parts prices, and other factors.