TYIDF - Toyota halts production at all factories in Japan

2023-08-29 03:57:05 ET

Japanese auto giant Toyota ( NYSE: TM ) ( OTCPK:TOYOF ) ( OTCPK:TYIDF ) faces a standstill at its factories in Japan due to a production malfunction, not likely a cyberattack.

The Japanese car manufacturer suspended operations at 12 of its 14 domestic plants on Tuesday morning and added the final two in the afternoon. The glitch left the company unable to order components, and the amount of lost output remains unclear, a company spokesperson told Reuters.

These 14 plants together account for around a third of Toyota's ( TM ) global production.

Toyota ( TM ) is known for its just-in-time inventory management, which reduces costs but makes production vulnerable to supply chain bottlenecks.

Last year, Toyota ( TM ) was forced to temporarily suspend operations at all 14 domestic plants due to a cyberattack. This time around, the system error is not believed to be a cyberattack.

After a string of output reductions that it attributed to a scarcity of semiconductors, Toyota's ( TM ) domestic manufacturing had been recovering. Output increased by 29% from January to June. The carmaker has set a production target of 10.6M vehicles for 2023.

The stock dropped marginally by 0.21% on the Japanese stock exchange on Tuesday.

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