Global Economic Crisis: Toyota cutting production by 40% as supply chains disintegrate. GM and Ford halting production as auto industry goes belly up.

Toyota, hurt by the chip shortage, will reduce output 40 percent in September.

Toyota Motor, the world’s largest automaker, plans to cut production worldwide 40 percent in September because of a shortage of computer chips that the company had avoided being hurt by until now. The move will affect 14 plants in Japan and reduce output by about 140,000 cars and trucks next month, the company said.

GM, Ford halt some production as chip shortage worsens

DETROIT (AP) — The global shortage of computer chips is getting worse, forcing automakers to temporarily close factories including those that build popular pickup trucks.

General Motors announced Thursday that it would pause production at eight of its 15 North American assembly plants during the next two weeks, including two that make the company’s top-selling Chevrolet Silverado pickup.

Ford will stop making pickups at its Kansas City Assembly Plant for the next two weeks. Shifts will be cut at two more truck plants in Dearborn, Michigan, and Louisville, Kentucky.

The cuts will compound an already short supply of cars, trucks and SUVs on dealer lots nationwide that have pushed prices to record levels. Automakers reported that U.S. dealers had just under a million new vehicles on their lots in August, 72% lower than the 3.58 million in August of 2019.