HomeBusinessToyota, major chip supplier to cut production due to Japan

Toyota, major chip supplier to cut production due to Japan

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The world’s top-selling automaker Toyota said Friday it will halt operations on the majority of its Japanese production lines for three days as parts supply is hit by a recent powerful earthquake.

The 7.4-magnitude quake jolted east Japan on Wednesday night, derailing a bullet train and initially cutting power to over two million homes.

Three deaths have been linked to the quake off the coast of Fukushima, which was preceded by a 6.1-magnitude shake in the same area.

“Due to the parts shortage resulting from suppliers affected by the earthquakes, additional adjustments will be made to production operations in some plants in Japan,” the Japanese automaker said in a statement.

Toyota will suspend operations on 17 of its 28 domestic production lines from Monday to Wednesday, and one other line just on Monday.

The decision will impact 11 factories in total and includes some lines run by Toyota’s subsidiaries Hino and Daihatsu.

A Toyota spokeswoman told AFP that the stoppage will affect the production of approximately 20,000 vehicles.

The auto giant has already been forced to lower its production goals because of pandemic-related supply chain issues and the global chip shortage.

The company also halted operations at all 14 Japanese plants for a day last month, after one of its suppliers suffered a cyberattack.

Despite these challenges, Toyota was able to retain its crown as the world’s top-selling carmaker in 2021 and posted a forecast-beating quarterly net profit.

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