Toyota Factory Incident: Production Disturbances Are Resolved, But Them Are Still Depositing

Toyota factory in Takaoka. (Doc. Global Toyota)

JAKARTA - A few days ago, as previously reported by Toyota, the world's largest automotive company, surprisingly stopped the operation of all assembly plants in Japan due to damage to the production system.

This failure stops all activity in these factories, which has an impact on the loss of time that should have been used to produce vehicles. However, it appears that problems at Toyota's factories have been identified.

As reported by Reuters on Wednesday, August 30, two sources familiar with the situation said that the damage occurred during the process of updating the Toyota parts ordering system.

However, Toyota has yet to provide an official statement on the exact cause of the disturbance. On Wednesday, a Toyota spokesperson was also reluctant to confirm whether this issue arose during the system's renewal process.

Even so, Toyota has successfully restarted operations at their assembly factories in Japan just one day after experiencing problems. The full closure of production in their domestic facilities could have an impact on revenue of up to about US$356 million.

Meanwhile, the company reported an 8% increase in global sales in July compared to the same month the previous year, or recorded a record 859,506 vehicles sold. They also recorded a 15% increase in global production in the same month.

Previously, Toyota had stopped operations at its 12 factories since Tuesday morning, only two factories were still operating. However, eventually the 14 factories will stop after the second shift of the day, and the impact of production loss remains to be calculated.

This incident is a serious blow to the manufacturer, especially as Toyota's production in Japan is in the recovery stage after facing a series of production cuts due to a shortage of semiconductors.

In the previous year, Toyota's operations were also disrupted when one of its suppliers was targeted for cyber attacks. With just one day of disruption, the production of around 13,000 cars cannot materialize.

Business conditions in Japan as a whole have recently been vigilant, as many companies and government offices reported disruptions to their phone calls.