Toyota says coronavirus may break supply chain to its Japan factories

TOKYO — Toyota on Wednesday said that operations at its plants in Japan may be affected by supply chain issues linked to the new coronavirus outbreak in the coming weeks, as the global outbreak gathers pace.

The automaker, which operates 16 vehicle and components sites in Japan, said that it would decide on how to continue operations at its domestic plants from the week of March 9, after keeping output normal through the week of March 2.

Plants may be affected by potential supply disruptions in China as some plants in the epicenter of the virus outbreak remain are unable to produce and transport goods, while some plants remain closed under orders by regional authorities.

“We are receiving parts from China as normal for the moment, but we will assess the situation after the week of March 2,” a Toyota spokeswoman told Reuters.

Japan production accounts for nearly half of the 10.7 million cars Toyota sold globally in 2019.

The automaker also said it would cancel all non-essential travel for employees in Japan, the latest move by a global company to curb operations as the speed of the virus outbreak appears to gather pace.

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