While Toyota’s expertise in the automotive manufacturing remains undisputed thanks to their highly efficient production system, a shortage of critical parts can really put a dent into its production. Toyota is now forced to halt production in Japan for the entire week following shortage of steel.
On 8 January, Aichi Steel Corporation, the company that supplies steel to Toyota, suffered an explosion that damaged the site’s ability to produce steel for engines, transmissions, and chassis. It’s expected for Aichi to recover in full by March, but at the same time Toyota is forced to scramble for other sources of steel, as the company’s existing supply can only last them till 6 February.
Toyota’s production will stop during 8 to 13 February, and production is expected to resume as soon as 14 February. The silver lining here is global sales won’t be affected as much because nearly two-thirds of Toyota’s volume are contributed from their plants outside of Japan. As for the Malaysian models, UMW Toyota imports their cars from Thailand and Indonesia, whereas the Vios and Camry Hybrid models are locally assembled in Shah Alam.