(Bloomberg) — Toyota Motor Corp. will suspend work at all of its Japan factories on Tuesday after a supplier shut down its computer systems over concern about a possible cyberattack.
The world’s top auto producer said Monday it will suspend operations at all 14 plants in its home country. The stoppage is linked to Kojima Press Industry Co., which detected an abnormality in its internal server network after 9 p.m. on Feb. 26, according to Daisuke Suzuki, a spokesman for the closely held parts maker.
The manufacturer of metal, plastic, and electronic components found evidence its network was accessed from outside the company, raising concern about a possible cyberattack and leading Kojima Press to shut down the system the next morning. The Aichi Prefecture-based supplier is trying to restore the system from March 2, according to the spokesperson.
The incident hinders Toyota’s efforts to return to full production following factory halts in January and February because of chip shortages and Covid-related disruptions. Toyota, which had been relatively resilient to supply chain snags through most of the pandemic, has been trying to ramp up production to make up for lost output and meet soaring global demand for new vehicles.
“It’s hard to believe the timing of this for Toyota,” said Bloomberg Intelligence analyst Tatsuo Yoshida. “The auto industry has been focused completely on parts shortages, but this is a reminder that cyberattacks are a serious risk that must constantly be monitored.”
Affecting Affiliates
The system outage is also affecting Toyota’s affiliates. Hino Motors Ltd. is suspending all of its Japan plants, the bus and truck maker said late Monday. Daihatsu Motor Co. is suspending its Kyoto factory, according to the Nikkei, which was first to report Toyota’s shutdown.
Japan’s Ministry of Economy, Trade and Industry is investigating the system disruption, Kyodo reported without attribution.
Cyberattacks have risen in Japan in recent years. Authorities identified 12,275 cyber-crime cases in the country last year, a record high, according to Japan’s National Police Agency. Japan’s manufacturing industry is the largest target for crimes such as ransomware attacks.
Production Plans
Toyota said earlier this month it was planning to produce 950,000 vehicles in March, up from the 843,393 a year ago. A one-day stoppage for Toyota’s factories in Japan translates to roughly 13,000 vehicles, according to Shiori Hashimoto, a spokeswoman. The company operates 28 assembly lines in Japan.
Toyota’s production fell 15% in January, as the company halted output in the Chinese city of Tianjin when the government carried out multiple rounds of mass-testing on residents. Earlier this month, some of Toyota’s North American operations were affected by protests that shut some of the main trade routes between the U.S. and Canada.
Read more: Toyota Production Dips in January on Chip, Covid Disruptions
The disruptions in the first month of the year prompted Toyota to cut its output goal for the fiscal year through March to 8.5 million vehicles from a previous target of 9 million. The company is investigating whether it can resume operations from Wednesday, Hashimoto said.
(Updates with supplier suspecting a possible cyberattack in the headline and first paragraph.)
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