Jakarta, CNBC Indonesia – After suspending operations at all of its assembly plants in Japan on Tuesday (29/8/2023) afternoon local time, car manufacturer Toyota Motor will resume operations at its assembly plants in Japan tomorrow, Wednesday (30/08/2023).
A Reuters report, Tuesday (29/08/2023), said that Toyota will resume operations at 25 production lines from a dozen factories in its domestic market starting Wednesday morning and adding the last two factories starting in the afternoon.
Previously, Toyota acknowledged that there was a breakdown in its production system, which was the reason why domestic production had stopped. The company also admits that it is investigating the cause of the system crash and assures it is most likely not due to a cyber attack.
Toyota’s factories in Japan as a whole account for about a third of the automaker’s global production.
Toyota’s domestic production has recovered after a series of production cuts allegedly caused by a semiconductor shortage. Output rose 29% in January-June, the first increase in two years.
Production in Japan averaged around 13,500 vehicles daily in the first half of this year. This figure does not include vehicles from the automaker groups Daihatsu and Hino.
Operations were halted for one day last year when the supplier suffered a cyberattack, hampering Toyota’s ability to order parts. Toyota is back in operation using the backup network.
Analysts say Toyota could be tested to make up for production lost during power outages, for example by running extra shifts.
“Output is running at full capacity so there is little additional room for production,” said Seiji Sugiura, analyst at Tokai Tokyo Research Institute.
Tuesday’s incident also had a big impact. Group company Toyota Industries said it had partially halted operations at two engine plants due to the automaker’s mistake.
Toyota itself is cited as a pioneer of just-in-time inventory management, which keeps costs down but introduces supply chain disruptions that put production at risk.
Although the cause of this latest malfunction remains unclear, Japanese companies have been on high alert in recent days as many companies and government offices reported interruption of phone calls.
The government said the calls most likely came from China and related to the release of radioactive water treated by Japan from the Fukushima nuclear power plant into the Pacific Ocean.
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