Toyota expands production halts in Japan as earthquake hits parts procurement
Toyota Motor is expanding production halts at 11 plants in Japan for three days next week after a strong earthquake hit the northeast part of the country, disrupting the carmaker’s ability to procure key parts. A total of 18 production lines will be halted from Monday through Wednesday, leading to an estimated loss of around 20,000 units, company spokeswoman Shiori Hashimoto said in a statement.
The halting of the production lines come due to Toyota's inability to secure certain parts from suppliers impacted by the earthquake that struck off the shore of Fukushima prefecture earlier this week. The earthquake-related parts shortages add to months of disruptions for the world’s largest automaker.
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Recently, Toyota’s factories had been halted due to a cyberattack on one of its suppliers and a Covid outbreak in the Chinese city of Changchun. Toyota also suspended two car plants in north Japan post the earthquake, though they resumed assembly at a limited capacity.
An earthquake with a magnitude of 7.4 killed three and injured more than 100 people. It also took a number of auto-part suppliers’ factories offline earlier this week. Toyota's top supplier Denso Corp.’s Fukushima facilities were temporarily halted after incurring damage due to the quake. The company is known to have been in the process of restarting most production as of late Thursday.
Hitachi Astemo Ltd. also temporarily halted seven factories in northern Japan while inspecting for any damage to the facilities due to the cmity, a spokesman for the auto-parts supplier said in a statement. Renesas Electronics Corp., another key automotive chipmaker, halted three of its facilities in Ibaraki, Gunma and Yamagata prefectures.
These companies will be joined by Subaru Corp which also plans to suspend operations at three factories in Gunma for two days this month due to parts shortages caused by the earthquake.
(with inputs from Bloomberg)