Toyota stops production at several Japanese plants due to system malfunction.
Toyota Suspends Operations at Assembly Plants in Japan
By Satoshi Sugiyama
TOKYO (Reuters) – Toyota Motor Corp has temporarily halted operations at a dozen assembly plants in Japan due to a malfunction with its production system, the automaker announced. This unexpected issue is likely to bring almost all of its domestic output to a halt.
The company is currently investigating the cause of the problem, and a spokesperson stated that it is “likely not due to a cyberattack.” However, this malfunction has prevented Toyota from ordering necessary components for production.
While the exact extent of the lost output is unclear, operations have been suspended at all of Toyota’s domestic assembly plants, with the exception of two plants: the Miyata plant in Fukuoka and a Kyoto plant run by Toyota unit Daihatsu. These 14 plants in Japan account for approximately one-third of Toyota’s global production, making it a significant setback for the world’s largest automaker.
The suspension of operations began on Tuesday morning, and it remains uncertain whether they can be resumed for the afternoon shift, according to the spokesperson. This incident is reminiscent of last year when Toyota faced a cyberattack that caused a one-day disruption and a loss of around 13,000 cars.
Toyota’s just-in-time inventory management system, which aims to reduce costs, also makes the company vulnerable to disruptions in the logistics chain. This recent outage is another blow to corporate Japan, which has already been dealing with other challenges.
Shares of Toyota were down 0.3% at 2,429 yen in early Tokyo trade.
(Reporting by Satoshi Sugiyama; additional reporting by Miyoung Kim; Editing by Muralikumar Anantharaman and Christopher Cushing)
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