14 Toyota factories in Japan halt operations due to major malfunction

author: FutureCar Staff    

Toyota, the world's largest automaker and one of Japan's most important companies, announced on Tuesday that it had temporarily halted operations at all 14 of its factories in Japan. The halt was due to a system glitch, although there was no indication that it was the result of a cyberattack. The incident began on Tuesday morning, and Toyota has not provided further details about the nature of the glitch.

A Toyota spokesperson stated, "Fourteen vehicle factories, affecting 25 lines, are not able to process orders for parts due to a system glitch... At this point, we believe it is not a cyberattack. We will continue to investigate the cause of the matter and will restore it as soon as possible." It remains unclear when normal production will resume, and there is no information about whether factories outside of Japan have been affected.

The news of the factory shutdowns caused Toyota's stocks to decline, with a 0.64 percent drop to 2,421.0 yen. However, the selling pressure appeared to have eased before the midday break in Tokyo markets. This is not the first time Toyota has faced disruptions in its production activities. Last year, the company had to suspend all of its domestic factories after a cyberattack on one of its subsidiaries.

Toyota's production activities have a significant impact on Japan's economy. The company is highly regarded and respected, and its efficiency is well-known. Toyota's "just-in-time" production system, which involves delivering small quantities of necessary parts at various stages of the assembly process, has been studied by other manufacturers and business schools worldwide. While this system improves efficiency and minimizes costs, it also carries certain risks.

Despite challenges such as the global chip shortage and the impacts of the COVID-19 pandemic, Toyota retained its position as the top-selling automaker globally for the third consecutive year in 2022. The company aims to achieve an annual net profit of 2.58 trillion yen, a 5.2 percent increase from the previous year, and sales of 38 trillion yen for the fiscal year ending in March 2024.

The automotive industry is currently experiencing a surge in global demand after the slowdown caused by the pandemic. However, severe shortages of semiconductors have limited production capacity for various products, including cars and smartphones. Toyota has reported improvements in chip supplies and has taken measures such as raising product prices and collaborating with suppliers to restore production activities to normal levels. However, there are still delays in delivering new vehicles to customers.

In conclusion, Toyota's temporary factory shutdowns in Japan due to a system glitch have raised concerns, although there is no evidence of a cyberattack. The company's reputation and its efficient production system have made it a key player in Japan's economy. Despite challenges faced by the industry, Toyota remains focused on achieving its financial targets and addressing supply chain issues.

FutureCar Staff