The recent shutdown of Toyota Motor Corp’s plants in Japan, which sent shockwaves through the automotive industry, has been attributed to a malfunction that occurred during a system update, rather than a cyberattack, according to sources familiar with the situation.
Toyota, the world’s leading automaker, has not provided detailed information about the incident that led to the closure of its domestic plants. Even as operations resumed, a company spokesperson was unable to confirm whether the malfunction coincided with a system update.
The shutdown had significant financial implications for Toyota, potentially costing the company approximately $356 million in lost revenue for the day, as calculated based on production data and financial reporting by Reuters. This highlights the scale and importance of Toyota’s manufacturing operations in Japan.
Despite this setback, Toyota reported impressive global sales figures, indicating a robust recovery. In July, the company saw an 8% increase in global sales compared to the same month in the previous year, totaling a record-breaking 859,506 vehicles sold. Additionally, global production increased by 15% during the same period.
This positive trend is not isolated, as Toyota has been steadily improving its global sales for six consecutive months and boosting production for seven months in a row. This recovery comes in the wake of supply chain disruptions and COVID-19 containment measures that plagued the automotive industry in the previous year.
It’s worth noting that these figures encompass Toyota’s luxury brand, Lexus. While sales in China experienced a 15% decline in July, there were stronger sales in Japan, the United States, and Europe. Domestic sales surged by 35%, and the U.S. market saw an 8% increase.
However, the suspension of output on Tuesday is expected to impact Toyota’s August numbers, with the full extent of the impact to be revealed next month. Nevertheless, Toyota remains optimistic about its overall performance.
In fact, there are reports suggesting that Toyota’s global production may exceed 10.2 million vehicles this year, surpassing the 10 million mark for the first time in its history. However, the company has refrained from commenting on this projection.
While Toyota continues to investigate the exact cause of the plant malfunction, it has ruled out the possibility of a cyberattack. This reassurance is important in an era when cyber threats have become a growing concern for industries reliant on advanced technology.
