Toyota Factories in Japan Experience Technical Issue

author: FutureCar Staff    

Toyota announced on Tuesday that it has been forced to suspend production at all 14 of its factories in Japan due to a technical glitch. The world's largest automaker did not provide further details about the stoppage, but stated that it does not believe it was caused by a cyberattack. The glitch affected the company's system for processing orders for parts, resulting in the suspension of a dozen factories or 25 production lines on Tuesday morning. Later, Toyota decided to halt the afternoon shift at the remaining two operational factories, bringing the total number of suspended production lines to 28.

In a statement to AFP, Toyota said, "We do not believe the problem was caused by a cyberattack. We will continue to investigate the cause and restore the system as soon as possible." The incident only affected Toyota's Japanese factories. The exact timeline for when normal production will resume is currently unclear. The news briefly caused Toyota's stocks to decline in the morning session before recovering.

Last year, Toyota had to suspend all of its domestic factories after a cyberattack targeted one of its subsidiaries. As one of Japan's largest companies, Toyota's production activities have a significant impact on the country's economy. The company is known for its "just-in-time" production system, which involves delivering small quantities of necessary parts and items at various stages of the assembly process. While this system improves efficiency and reduces costs, it also carries certain risks.

Despite the production disruption, 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 $17.6 billion in the current fiscal year. Major automakers are currently benefiting from a strong surge in global demand following the slowdown caused by the COVID-19 pandemic. However, the industry has been grappling with severe semiconductor shortages, which have limited production capacity for a range of goods including cars and smartphones.

Toyota has reported that chip supplies are improving and that it has raised product prices as it works with suppliers to restore production to normal levels. Nevertheless, the company is still experiencing delays in delivering new vehicles to customers.

FutureCar Staff