Toyota's Japan production at standstill as system failure hits plants


Toyota’s domestic production had been on the rebound after a series of output cuts it blamed on semiconductor shortages. Output was up 29 percent in January-June, the first such increase in two years.

Its Japan output averaged about 13,500 vehicles daily in the first half, Reuters calculations showed. That excludes vehicles from group automakers Daihatsu and Hino.

Operations were halted for a day last year when a supplier suffered a cyberattack, hampering Toyota’s ability to order parts. Toyota resumed operations using a back-up network.

Knock-on effect

Tuesday’s incident is having a knock-on effect. Group firm Toyota Industries said it has partially suspended operations at two engine plants due to the automaker’s glitch.

Toyota is a pioneer of just-in-time inventory management, which keeps down costs but means supply chain snarls put production at risk.

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

The government said the calls were likely from China and related to Japan’s release of treated radioactive water from the wrecked Fukushima nuclear power plant into the Pacific Ocean.



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