One-Third Of Toyota's Global Production Frozen Due To Mysterious Glitch - OilPrice.com
One-Third Of Toyota’s Global Production Frozen Due To Mysterious Glitch | OilPrice.com
Precious metals, including gold, silver,…
A record-high crude oil production…
The world's biggest-selling automaker has frozen output at all factories across Japan "due to a system malfunction," according to Bloomberg.
A Toyota spokesperson said a 'glitch' in ordering parts forced the company to shutter operations at all 14 assembly plants. This is a big problem for the company because it utilizes a just-in-time inventory strategy, which keeps only a limited amount of parts on hand to minimize costs -- might lead to supply chain snarls if downtime is long enough.
Bloomberg said, "28 assembly lines churning out everything from the top-selling Corolla and Camry to Prius hybrids" have been affected. The spokesperson said it's unclear when operations will restart, nor does the company suspect a cyberattack.
Toyota shares were muted in Asia and have yet to react to the disruption because it's still unclear how much output would be lost. Reuters calculations showed the 14 plants accounted for a third of the automaker's global production.
Even though Toyota does suspect a cyberattack, Japan's biggest port in Nagoya was paralyzed in July due to a Russian ransomware attack. Last year, the carmaker was hit with a one-day production halt after a major supplier was hit with a cyberattack. The cause of the malfunction that has made it impossible to order parts is still unknown.
The good news is public broadcaster NHK said the Miyata plant in the southern prefecture of Fukuoka would restart on Wednesday.
By Zerohedge.com
More Top Reads From Oilprice.com:
Join the discussion| Back to homepage
ADVERTISEMENT
Related Knowledge Center: Climate economics
Climate change is now a driver of the world’s economy. The impact is profound:
- Catastrophic weather events — hurricanes, floods, droughts, high temperatures — are more frequent and more extreme. The cost can be measured in both the initial damage caused and the longer-term impact on the economy.
- Vulnerable communities are increasing climate-related investments, hardening infrastructure and taking other protective measures.
- Investment in carbon capture and storage technologies is increasingly rapidly.
- Governments are making investments and crafting regulations to reduce emissions of carbon dioxide and other greenhouse gases.
On top of all of this is the cost of uncertainty. As the Fourth National Climate Assessment, released in 2018 by the U.S. Global Change Research Program, says, “The assumption that current and future climate conditions will resemble the recent past is no longer valid.”