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Toyota restarts Japanese production after technical glitch

Date: August 30, 2023 Pooja Sharma Pooja Sharma
Toyota restarts Japanese production after technical glitch 
Toyota Motor is reportedly set to recommence its operations at assembly plants across Japan on Wednesday. This move comes in response to a production system disruption that had caused a temporary halt in domestic output at the world's largest automaker in terms of sales volume.



Beginning Wednesday morning, Toyota will initiate operations on 25 production lines spanning multiple plants within its home market. Later in the day, the final two plants will also resume their activities, as per the company's announcement.



The investigation into the root cause of this malfunction is ongoing. Toyota has clarified that the disruption was not a result of a cyberattack, but rather a technical glitch that impeded the company's ability to place component orders.



For the record, these plants collectively contribute to approximately one-third of the automaker's global production. Before this setback, Toyota's domestic production had been making a recovery after having experienced a series of reductions due to semiconductor shortages. Notably, output in the first half of the year witnessed a substantial 29% increase, marking the first such rise in a span of two years.



Throughout the initial six months of the year, Toyota's production in Japan maintained an average of around 13,500 vehicles daily, excluding the vehicles manufactured by group automakers Daihatsu and Hino.



This incident's impact was felt beyond just Toyota's immediate operations. In fact, the automaker's glitch led to partial suspensions of operations at two engine plants operated by group entity Toyota Industries.



Seiji Sugiura, an analyst at Tokai Tokyo Research Institute, noted that due to previous high-capacity production, there's limited additional space for manufacturing, thus intensifying the challenge.



The incident's repercussions are underscored by the broader context of recent developments. With businesses and government offices reporting harassing phone calls, Japan has been on heightened alert. While the exact cause of the malfunction remains uncertain, these calls are suspected to originate from China, linked to Japan's disposal of treated radioactive water from the damaged Fukushima nuclear power plant into the Pacific Ocean.



At the stock market, Toyota's share price concluded with a 0.21% decline, settling at 2,431.5 yen. This came after a period of deeper negative territory during the morning trading session.



Source credit: https://www.reuters.com/business/autos-transportation/toyota-halts-operations-12-japan-factories-due-system-failure-nhk-2023-08-29/

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Pooja Sharma

Pursuing her professional career as a content writer for over two years now, Pooja Sharma is endowed with a post-graduate degree in English Literature. The articles that she writes are a balanced blend of her ever-growing love of language and the technical expertise that she has gained over the years. Currently Pooja pens insightful articles for Newsorigins and numerous other websites, covering subjects such as business, finance, and technology.