System Glitch Halts All Toyota Plants in Japan

Today, Toyota announced the temporary suspension of operations across all 14 of its factories in Japan due to a system failure, reports DW.

The company stated that the glitch has affected 28 assembly lines, and it remains unclear when normal operations will resume.

"The issue does not appear to be the result of a cyberattack, and is currently under investigation," said company spokesperson Sawako Takeda.

The malfunction has resulted in the company losing the ability to order parts.

The car manufacturing giant has not yet disclosed when operations will resume or the extent of the production losses due to this stoppage.

Although Toyota is well-known for its 'Just-In-Time' manufacturing practice, which helps to reduce costs, it can be vulnerable in cases of supply chain disruptions.

The news of the halt in production has already led to a 0.64% drop in Toyota's stock price to 2,421.0 yen.

Currently, 12 out of the 14 plants have been halted, and after the completion of the second shift, the remaining two factories will also be shut down.

Toyota holds a significant position in Japan as one of the most well-known companies, and its manufacturing operations play a vital role in the country's economy.

In total, the 14 Japanese plants make up about one-third of Toyota's global production. "By total sales, Toyota is the world's largest carmaker," writes Reuters.

It should be noted that last year, Toyota also faced a shutdown when one of its suppliers was affected by a cyberattack. That one-day glitch resulted in a loss of approximately 13,000 cars in production.

Also, last year, Toyota suspended operations on some of its production lines in Japan due to a lockdown related to the coronavirus in Shanghai, China's economic centre.

Overall, the automotive industry has experienced a surge in global demand following the slowdown caused by the coronavirus pandemic.

At the same time, the shortage of semiconductor chips, which has been constraining production capacities for various products including cars and smartphones, has recently started to diminish.

Despite challenges related to the prolonged pandemic and a global chip shortage, Toyota maintained its position as the world's best-selling carmaker for the third consecutive year in 2022.