Toyota halts all assembly plants in Japan amid system malfunction
What's the story
Toyota Motor Corporation, the world's biggest carmaker, has suspended operations at all 14 of its assembly facilities in Japan due to a production system malfunction.
The issue has prevented the company from ordering components, and while the cause is still under investigation, a spokesperson stated it is "likely not due to a cyberattack."
These plants account for roughly a third of Toyota's global production.
Details
The glitch affects production of over 13,000 vehicles daily
The suspension comes as Toyota's Japanese production had been recovering from reduced output plans caused by semiconductor shortages earlier in the year.
In the first half of this year, production in Japan increased by 29%, marking the first such rise in two years.
Daily production for Toyota brands, barring Daihatsu and Hino, averaged about 13,500 vehicles during this period.
Problems
Just-in-time inventory system's vulnerability exposed
Last year, Toyota experienced a one-day disruption when a supplier faced a cyberattack, resulting in an output loss of roughly 13,000 cars. The automaker's just-in-time inventory management system keeps costs low but can also put production at risk due to logistical issues.
Insights
Corporate Japan on alert amid harassing calls
This current production shutdown incident occurs as corporate Japan remains on alert, following a surge of harassing phone calls targeting businesses and government offices.
The Japanese government believes these calls are likely originating from China and are related to Japan's decision to release treated radioactive water into the Pacific Ocean from the Fukushima nuclear power plant.