The news: Toyota, the world’s number-one car manufacturer, was forced to shut down all of its Japanese factories on Tuesday due to a production system malfunction.
How we got here: A computer glitch is preventing Toyota from ordering components, resulting in stalled domestic output.
Earlier this year, Toyota’s cloud services platform leaked critical data belonging to 2.15 million users in Japan over a decade, exposing some carmakers’ difficulties in pivoting to tech.
Just-In-Time manufacturing in focus: Toyota, which pioneered Just-In-Time manufacturing, directs parts arriving from suppliers straight to the production line rather than stockpiling them.
What’s next? Toyota will restart domestic production today by resuming operations at 25 lines of a dozen plants in its home market. The company will likely try to double down on lost production by running extra shifts.
"Output was running at full capacity, so there's little additional room for production," said Seiji Sugiura, an analyst at Tokai Tokyo Research Institute.
One Liberty Plaza9th FloorNew York, NY 100061-800-405-0844