Toyota Factory Ready To Operate Again After Explosion Disturbance At Supplier Factory

Toyota will continue operations at some of its factories after experiencing supply disruptions due to explosions at supply plants.

Although most production has stalled, the company has managed to secure enough spare parts to continue operations in four factories. However, eight production lines in the other six factories will still be closed.

This disruption was caused by a lack of springs used for suspensions and other parts of the car after an accident at the Chuo Spring factory.

Launching from Nikkei Asia, Sunday, October 22, the incident has caused production to stall in most of Toyota's 14 assembly plants in Japan. Eight production lines in six other factories remain closed, while Toyota indicates plans to decide when operations will resume on Monday afternoon.

This operational disruption started with an accident at the Chuo Spring factory, in Toyota City, Aichi Prefecture, Japan. This causes a shortage of suspensions and other parts that interfere with model productions such as RAV4 and Land Cruiser.

This termination is the latest occurrence of a series of production problems the automaker has experienced in recent years, including errors in the spare parts ordering system in August.

Previously, the world's largest automotive company had stopped the operations of all assembly plants in Japan due to damage to the production system a few months ago.

The problem has been identified during the renewal process of the spare parts ordering system. However, Toyota was able to restart operations at their assembly factories in Japan in just one day after experiencing problems. The full closure of production in their domestic facilities could have an impact on revenue of around US$356 million of around Rp5.67 trillion.