BNR – Toyota, the automotive titan of Japan, has temporarily suspended operations across all its assembly plants in the country. The suspension comes due to an issue within its production system.
This development has effectively brought to a standstill the domestic manufacturing operations of the world’s leading car manufacturer.
Component Requisition Glitch
The glitch, which has impeded the firm’s ability to requisition crucial components, has prompted a comprehensive halt in Toyota’s production.
Despite the interruption, a company representative assured that the current predicament is not believed to stem from a cyber-attack. Furthermore, he stated that investigations are ongoing to pinpoint the root cause of the glitch.
On Tuesday, the initial suspension impacted 12 out of Toyota’s 14 assembly plants in Japan. Subsequently, the company extended this measure to include all 14 facilities.
Regrettably, the corporation has yet to unveil a timeline for the resumption of production or to quantify the extent of the production loss incurred due to the halt.
Impact on Toyota Production and Global Capacity
Collectively, these 14 facilities make up approximately a third of Toyota’s global production capacity. This disruption arrived as the company’s Japanese production was in the process of recovering from a series of prior setbacks.
Last year, the company’s operations faced the consequences of a cyber-attack on one of its suppliers. This resulted in an output loss of approximately 13,000 vehicles.
The car manufacturer also encountered challenges related to the coronavirus Covid-19 pandemic. In response to the lockdown in China’s economic hub, Shanghai, Toyota temporarily halted production lines in Japan.
The production strategy of Toyota, emblematic of the “just-in-time” system, champions operational efficiency and cost minimisation. However, its reliance on prompt component deliveries renders it susceptible to disruptions such as the current glitch.
This further highlights the delicate balance between streamlined manufacturing and potential vulnerabilities.
