Why Toyota's Production Cuts Are a Warning Sign for All Auto Stocks

Auto giant Toyota (NYSE: TM) said on Thursday that it will cut its global production output by 40% in September, because of parts shortages affecting its factories in Japan and elsewhere.

This is a big deal, not just because of Toyota's huge global footprint but because Toyota has so far largely avoided production cuts amid a global shortage semiconductors. But if even Toyota is now feeling the effects of supply chain disruptions, it suggests strongly that that the global shortage of new vehicles won't end any time soon. 

Here's what we know and what it might mean for auto investors holding shares of Toyota and other big automakers.

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Source Fool.com