Toyota Production Japan May Stop Next Month Due to Steel Shortage

Toyota Production Japan May Stop Next Month Due to Steel Shortage

Toyota may have to halt production of its vehicles in Japan due to a shortage in steel.

The shortage is the result of an explosion at the Aichi Steel plant, one of Toyota’s affiliates. The blast has curbed production of steel parts, possibly affecting output of the world’s largest automaker, which produces about 40 percent of its global output in Japan. According to a spokesman, the Japanese automaker has enough supply inventory to keep its domestic plants running until February 6.

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Following that date, Toyota will monitor its supply on a day-to-day basis and decide accordingly. The Aichi Steel plant explosion happened on January 8 at its Chita plant in central Japan, hurting production of special steel parts. The plant is aiming to resume operations in March.

Last year, the automaker’s plants in Japan produced four-million vehicles, with roughly 46 percent being exported. Halting production could hurt Toyota’s plans to produce 4.13-million vehicles in the country this year, including the all-new Prius that is produced solely in Japan. Worldwide, the company plans to build 10.2-million vehicles in 2016 after posting worldwide sales of 10.15 million last year, giving it the title of world’s largest automaker for the fourth consecutive year.

[Source: Reuters]

Discuss this story on our Toyota Forum

  • Jonny_Vancouver

    Now VW is resorting to sabotage?! cmon, sore loser much? /snicker

  • smartacus

    Can’t they just buy their steel from Hyundai?

  • craigcole

    Surely they must be able to get extra steel from somewhere …

  • Hugh1234

    Learn east asian business more. If you looking for the word for “KOREAN(I know you love Korean vs Japanese stuff 😉 )” steel manufacturer, it is not the Hyundai. You want to say Posco. And the Posco is raised by Japanese company JFE steel. They have an agreement between two groups because after JFE stop supporting Posco, it started stealing confidential business information from JFE retired employee over years. They sued each other some of specific technology and patent and eventually Posco has lost all of case as same result as Apple and Samsung. Business historically JFE and Toyota is so close so it is hard to think that Toyota will buy steel from Posco. But still, Aichi steel is one of the Keiretsu company of Toyota group. Even though last November, WSJ released an article that Toyota is going to get rid of Keiretsu system, however they still have to find alternative resources that perform as great job as great corporate governance system Keiretsu. Toyota’s quality control circle is developed with these Keiretsu companies. This is not so simple as we think.

  • smartacus

    no i will NOT learn East Asian Business more.

    I’ve had so many one-up comments from people before,
    but this is the first haughty “Learn East Asian Business More” comment
    i mean WOW, i feel so put in place now