Japan quake delivers another setback to Toyota Motor’s supply chains and it may get worse
A major earthquake in Japan forces Toyota to suspend production causing another dent on its profit bases significantly Toyota Motor was obliged to shut down its factories after the earthquake that hit the Tohoku region, northern part of Japan, on the night of March 16 made it difficult to procure parts in addition to the global shortage of semiconductors and the spread of the new coronavirus infection. The earthquake is causing additional problems for the already constrained global automotive supply chain straggling to cope with problems caused by the coronavirus pandemic and Russia’s ongoing invasion of Ukraine. The impact of the disruption in the distribution network caused by Russia's invasion against Ukraine is another concern for Toyota Motor being exposed to a severe business environment for the time being. Toyota Motor Corporation announced on March 18 that it will reduce production by about 20,000 units due to the suspension of operations at 11 domestic plants. As Toyo