Tokyo, 29 Aug, 2023 (GNP): Toyota is set to recommence operations at its Japanese assembly plants on Wednesday, after a 24-hour pause caused by disruptions in its meticulously orchestrated supply chain.
The largest automaker worldwide in terms of sales revealed that all 14 of its vehicle factories in Japan ceased operations on Tuesday due to a system malfunction that had originated on Monday. This glitch hindered the processing of orders for critical automotive components.
In an official statement, the company confirmed that production is slated to return to its standard pace across all 14 plants in Japan, commencing with the second shift on Wednesday.
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Toyota clarified that the system malfunction was not a result of a cyberattack. Nevertheless, the organization intends to delve into the root cause of the disruption.
The company expressed remorse for the inconvenience caused to customers, suppliers, and affiliated parties due to the suspension of operations.
Having pioneered the “just-in-time” production model, Toyota relies on the precise delivery of parts to assembly plants right before they’re needed.
While this approach saves costs and warehouse space, it becomes fragile when any link in the chain is compromised.
Quantifying the exact output loss remains unclear. Simultaneously, Toyota’s Japanese plants produce around a third of the automaker’s global production, as calculated by the sources.
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As per sources, Toyota dispatched nearly 10.5 million vehicles in the previous year. By comparison, in 2022, Volkswagen, which often contends with Toyota for the top spot in global sales, sold 8.3 million units.
It’s worth noting that Toyota confronted a similar situation last year when a cyber attack on one of its suppliers led to a system failure and complications in sourcing automotive parts. The suspension in that case also lasted for a day.
