Toyota Says Chip Shortage Impacting Output of Texas-Made Trucks

(Bloomberg) -- Toyota Motor Corp. is cutting production of its full-size pickup truck made in Texas due to a global shortage of semiconductors that has impacted many of the world’s largest automakers.

The Japanese company expects to trim output of its Tundra model manufactured in San Antonio by 40% this month as a result of limited chip supplies, a spokesman for Toyota’s U.S. operations said in an email Saturday.

“Thus far only Tundra is impacted in North America,” said spokesman Scott Vazin.

Toyota is the latest car manufacturer to slash output after chipmakers re-assigned production capacity amid auto factory shutdowns last spring and were surprised by a sharp rebound in car demand later in the year. The cutbacks come as many automakers have been ramping up production to replenish low inventories of popular models such as sport utility vehicles and trucks.

Read more: Chip Shortage Forces Global Automakers to Cut Production

Toyota sold 109,203 Tundra pickups last year in the U.S., less than half the number of Tacoma mid-size trucks it delivered. While the Tundra has struggled in the full-size market, the Tacoma has been been best-selling truck in its segment for more than a decade.

Read more: Toyota’s Tacoma Pickup Takes On All Comers and Remains on Top