I think they’re fabless, so they’re using some other fab's production capacity. This is a hedge, and it drives up the cost a hair. But it will assure some vehicle production to meet demand. I’m sure GM has product to sell too. They didn’t cancel all chip orders. This is more of a synchronization issue really. I suspect they produced the DOA vehicles thinking more chips would eventually show up. At a deeper take, it might be more expensive to idle production now.
Actually was just at a 90% empty Honda dealer. They are in chip negative starvation just like the rest and Toyota across the street was empty as well.
Denso, which is in tight orbit of Toyota, does actually have their own fabs in Japan. Toyota themselves have a fab too - this last was an outgrowth of the project that resulted in the Prius: https://www.semi.org/en/blogs/technology-trends/automotive-chip-manufacturing-in-japan-drives-innovation
Toyota is still being hurt by the industry wide shortage, but they can still make stuff at a lower rate on their own internal and close-associate resources.
I had forgotten that Honda was more dependent on Renesas, which had a bad fire at their main Japanese fab: https://www.wsj.com/articles/renesas-chip-plant-fire-spreads-concerns-about-global-auto-production-11616414181
I had also thought that Honda was still getting supplied by Hitachi, but it turns out Hitachi sold off the fab for that.