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Factory explosion: Toyota halts car assembly

2016-02-01 10:12

PRODUCTION HALTED: Toyota Japan said it would halt production at its factories following an explosion at a parts supplier. Image: Toyota

Tokyo, Japan - The world's biggest automaker, Toyota, said that it would temporarily stop its vehicle production in Japan due to a parts shortage following an explosion at a supplier.

The world's top automaker said assembly lines in its home market would go offline for a week from February 8 owing to a lack of components from affiliate Aichi Steel.

Overseas production would not be suspended, it added.

Production shutdown

Toyota publishes its nine-month financial results this week. It did not say if the temporary production shutdown would affect its results in the current quarter.

The company said: "Operations are scheduled to recommence on February 15, and vehicle production on lines outside Japan will not be suspended.

"Toyota will continue to take any measures necessary to minimise the impact of this incident on vehicle production."

Toyota said it may source parts, made on alternate production lines, operated by Aichi Steel and also could procure components from other steelmakers to meet its needs.

Factory explosion

Aichi Steel, which produces specialty steel products among other items, was hit by an explosion on January 8 which badly damaged parts of its production site.

Aichi Steel is expected to return to full operation in March.

Toyota said it does not disclose its daily production plans, but the firm has said it produced 14 000 units a day in 2015.

The company, which surpassed Volkswagen in 2015 to keep the title of world's top-selling automaker, produced more than four million cars in Japan in 2015 and over 10 million worldwide.

At the Tokyo Stocks Exchange, Toyota shares rose 1.31% to 7294 in early trade, mirroring the headline Nikkei index, which added 1.27%.

Read more on:    toyota  |  auto industry

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