Toyota does not get rid of problems: what happens to production after the earthquake

Toyota Motor Corp. will suspend operations at more than half of its operations in Japan and is studying potential overseas production disruptions due to supply chain disruptions triggered by a strong earthquake that shook the country.

The carmaker will stop production for three days, starting next week, on 18 lines at 11 factories in Japan, out of a total of 28 lines in 14 factories operated nationwide, the carmaker announced on Friday.

Toyota said it would lose about 20,000 production vehicles from the quakes caused by the quake.

In addition to the already announced slowdown triggered by a cyber attack and microchip shortage, Toyota’s operations in Japan will be reduced by a total of 50,000 units for March, compared to its original plan.

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The latest suspensions will reduce the production of Toyota models, including Crown and Yaris passenger cars, as well as RAV4, Harrier, C-HR crossovers and Land Cruiser SUVs.

Lexus LS and IC sedans, RC and LC coupes and the NX crossover will also be affected.

Toyota reduced global production in April by 17% to 750,000 units. This perspective did not take into account the potential disruptions of the earthquake or the war in Ukraine.

Suppliers restart slowly

However, suppliers near the quake area have slowly resumed online operations.

Critical semiconductor manufacturer Renesas Electronics Corp. said it had resumed partial test production at two of the three factories near the quake. Those factories, the Naka and Takasaki factories, should reach their maximum production capacity before the March 23 earthquake.

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Separately, Toyota Denso Corp. said some of its factories in the quake had been damaged and are still being inspected.

Meanwhile, Hachi-affiliated Hitachi Astemo has suspended operations at five factories in the disaster area, while teams are assessing damage to the facility.

A Hitachi Astemo spokesman said some factories had been damaged, but the company did not expect major disruptions.

The company monitors its own supply of components from lower level suppliers and aims to start a gradual restart of the factories.

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