Toyota factories in Japan face shutdown due to major malfunction

author: FutureCar Staff    

Toyota Motor Corp, 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 due to a system glitch. The company clarified that the issue did not appear to be a cyberattack, but did not provide further details about the incident, which began on Tuesday morning. According to a Toyota spokesperson, the system glitch affected 14 vehicle factories and 25 lines, preventing the processing of orders for parts. The company assured that it would investigate the cause and restore operations as soon as possible.

It remains unclear when normal production will resume, and it is also unknown whether Toyota's factories abroad were affected by the system glitch. The news of the factory shutdowns caused Toyota's stocks to decline by 0.64 percent, trading at 2,421.0 yen. However, the initial shock selling seemed to have slowed down 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 targeted one of its subsidiaries. As one of Japan's most important and respected companies, Toyota's production activities have a significant impact on the country's economy.

Toyota is renowned for its efficiency and the "just-in-time" production system, which involves delivering small quantities of necessary parts and items at various stages of the assembly process. This approach minimizes costs and improves efficiency, making it a subject of study for other manufacturers and business schools worldwide. However, it also comes with risks.

Despite the challenges posed by the COVID-19 pandemic and the global chip shortage, Toyota retained its position as the top-selling automaker for the third consecutive year in 2022. The company has been actively addressing these challenges by raising product prices, working with suppliers to normalize production activities, and benefiting from improving chip supplies. However, delays in delivering new vehicles to customers are still being experienced.

The automotive industry as a whole is currently benefiting from a strong surge in global demand following the slowdown in manufacturing activities caused by the pandemic. However, the industry has also been grappling with severe semiconductor shortages, which have limited production capacity for various products, including cars and smartphones.

Looking ahead, Toyota aims to achieve an annual net profit of 2.58 trillion yen, representing a 5.2 percent increase compared to the previous year, and sales of 38 trillion yen for the fiscal year ending in March 2024.

Source: © 2023 AFP

FutureCar Staff