Potential halt to Toyota production in Japan announced

Toyota Auris Touring Sports
Credit: Toyota

Toyota has revealed that it may halt car production at its domestic plants in Japan this month due to a shortage of steel.

This was the result of an explosion at a steel plant, operated by one of its affiliates, on January 8.
The blast occurred at Aichi Steel plant, and since then production of steel parts have been ceased, potentially impacting the output of the world's best-selling automaker.

A Toyota spokesman told Arab News: "At the moment, there is enough supply inventory to keep our domestic plants running until Feb. 6.

"After that, we will be monitoring our supply situation on a day-by-day basis and decide accordingly."

The spokesperson also added that the explosion has had a direct result on overtime and weekend shifts, with many cancelled for the next week.

Japanese carmaker Toyota, which also manufactures Lexus and Daihatsu cars, produced four million vehicles in 2015, with 46 per cent of this exported.

A pause in production would grossly impact Toyota's plans to produce over four million vehicles this year. This also includes its upcoming Prius hybrid – a popular model across the world.

Worldwide, Toyota plans to make 10.2 million vehicles this year, building on its successful output of 10.15 million in 2015 and continuing its streak as the world's largest carmaker, ahead of Volkswagen.

Aichi Steel has said that despite the incident at its Chita plant they aim for operations to be up and running again by March.

Author: Olivia Meades
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