Toyota’s Japan production halted due to system failures at assembly plants

Toyota’s Japan production halted due to system failures at assembly plants
  • Toyota is shutting down production at all 14 domestic assembly plants
  • System failure prevents Toyota from ordering parts
  • The cause under investigation is unlikely to be a cyber attack
  • Toyota plants one-third of global production – Reuters calculation
  • Stock up 0.12% in the afternoon; Spent the morning in negative territory

TOKYO, Aug 29 (Reuters) – Toyota Motor Corp ( 7203.T ) said on Tuesday it has halted domestic production at the world’s largest maker of domestic products due to a production system glitch at all 14 of its assembly plants in Japan. Vehicle manufacturer.

The glitch has prevented Toyota from ordering parts and the cause remains under investigation, although a spokesman said it was “not due to a cyber attack”.

Toyota has shut down 12 plants in its home market since Tuesday morning and added a final two since late afternoon, a spokesman said. It is not clear how much output will be lost.

These plants account for about a third of the carmaker’s global output, Reuters calculations show.

Toyota’s domestic production rebounded after a series of output cuts attributed to semiconductor shortages. Production rose 29% in January-June, the first increase in two years.

Its Japan production averaged 13,500 vehicles a day in the first half of the year, Reuters calculations show. It excludes vehicles from group automakers Daihatsu and Hino.

Last year, a supplier suffered a cyber attack that disrupted Toyota’s ability to order parts, halting operations for a day. Toyota resumed operations using a back-up network.

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The incident that took place on Tuesday has created a stir. Group company Toyota Industries ( 6201.T ) has partially suspended operations at two engine plants due to the automaker’s outage.

Toyota is a pioneer of just-in-time inventory management, which cuts costs, but supply chain coils put production at risk.

While the cause of the latest outage is unclear, corporate Japan has been on high alert in recent days as businesses and government offices reported harassing phone calls.

The government said the calls may have come from China and related to Japan’s release of treated radioactive water from the crippled Fukushima nuclear power plant into the Pacific Ocean.

Toyota’s share price rose 0.12% to 2,439 yen.

Report by Satoshi Tsukiyama; Additional reporting by Myeong Kim and Kevin Grolicki; Editing by David Dolan and Christopher Cushing

Our Standards: Thomson Reuters Trust Principles.

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