The world’s largest automaker, a multinational automotive manufacturer, has temporarily shut down all 14 of its assembly plants in Japan due to a malfunction in its production system. This has resulted in a complete halt to domestic output. While the cause of the glitch is being investigated, a spokesperson has stated that it is unlikely to be a cyberattack. The extent of the production loss is currently unclear.
According to calculations by a global news agency, these plants account for approximately one-third of the automaker’s global production. Before this incident, the automaker had been experiencing a rebound in domestic production after facing output cuts caused by a shortage of semiconductors. From January to June, output had increased by 29%, marking the first such rise in two years. On average, the automaker’s Japan output in the first half of the year was around 13,500 vehicles per day, excluding vehicles from other group automakers.
Last year, operations were halted for a day due to a cyberattack on a supplier, which affected the automaker’s ability to order parts. However, operations were later resumed using a backup network.
The current incident is having a ripple effect, as a group firm of the automaker has partially suspended operations at two engine plants due to the glitch.
Known for its just-in-time inventory management approach, which helps minimize costs but poses risks when supply chain issues arise, the automaker faces challenges in maintaining production due to disruption.