Steel Markets

Toyota Suspends Japanese Auto Production on Supplier System Failure

February 28, 2022

Toyota Motor Corp. will suspend Japanese automotive production on Tuesday, Mar. 1, because of a system failure at a supplier of plastic parts and electronic components, a company spokeswoman confirmed to Steel Market Update (SMU).

AutoAssembly2 Kojima Industries Corp, the supplier in question, said the complete system failure might be the result of a cyber-attack. An investigation into the incident is underway, according to several media outlets.

The temporary stoppage will impact both the first and second shifts at 14 assembly plants in Japan, bringing 28 domestic production lines to a standstill. The widespread pause is estimated to curtail the production of roughly 13,000 vehicles, Toyota said.

“Due to a system failure at a domestic supplier, Toyota Motor Corp. has suspended the operation of 28 lines at 14 plants in Japan on Tuesday,” a Toyota spokeswoman said. “We apologize to our customers and suppliers for any inconvenience this may cause. We will continue to work with our suppliers to strengthen the supply chain and make every effort to deliver vehicles to our customers as soon as possible.”

The production halt – which accounts for about a third of Toyota’s global production – is currently scheduled only for Tuesday. But the situation is fluid, and the length of the stoppage and the extent of disruptions remain unclear, she said. “It’s too soon to know at this point…but Japan will update their situation as needed. We’re hopeful it will be resolved very quickly.”

Currently, there is no impact on production in North America, the spokeswoman said.

By David Schollaert, David@SteelMarketUpdate.com

David Schollaert

David Schollaert is deputy editor-in-chief for Steel Market Update. David joined SMU after more than a decade in the metals and mining industry in a myriad of different roles. Much of his early experience and expertise were within the coverage and analysis of steel-making raw materials and served previously as senior editor of the CRU Prices Service. Most recently, however, before his return to market analysis, David held roles as a metals buyer and an operations manager for raw material suppliers. He can be contacted at david@steelmarketupdate.com or 724-720-1008.

David Schollaert

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