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Toyota production cut highlights ASEAN supply chain vulnerability

Malaysia chip processing suspension spills over to global companies

Toyota vehicles await export at the port of Laem Chabang, Thailand. A chip crunch is slowing the global auto industry. (Photo by Ken Kobayashi)

TOKYO -- Toyota Motor's announcement that it will slash production next month has sparked concerns over vulnerabilities in Southeast Asia's auto supply chain as the region grapples with new variants of the coronavirus.

Shares in the world's largest automaker fell 5% in Tokyo at one point on Friday, a day after it said it will cut planned global production for September by 40%, to 500,000 vehicles. Toyota cited component shortages caused by the spread of COVID infections disrupting factory operations in Southeast Asia, particularly Vietnam and Malaysia.

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