Another Vehicle Manufacturer Halts Factory Operations Following Explosion at Supplier Facility in Japan
Another major Japanese vehicle manufacturer halted production at three of its factories in Japan following a gas explosion at a facility manufacturing braking systems in Aichi Prefecture. The manufacturer halted production at the three factories, located in eastern Japan, due to a shortage in parts supplied by the factory that suffered the explosion. The manufacturer indicated production at the three factories would resume on Monday, June 6. The cause of the explosion, which injured at least four people, remains unclear.
The company is the second major Japanese vehicle manufacturer to suffer disruptions to factory production due to shortages in parts provided by the affected supplier facility. Another manufacturer halted production earlier this week at multiple assembly plants and support factories, including two major facilities in Aichi Prefecture, due to the explosion incident. The company indicated it resumed some factory operations by late afternoon yesterday and that all domestic production lines would resume today.
The explosion at the supplier facility underscores the significant impact that disaster incidents can have on downstream supply chain operations. The incident also highlights the potential for disasters to affect supply chain operations in countries with relatively robust business resilience capabilities, such as Japan. A subsidiary of the manufacturer that most recently halted some production operations in Japan also suspended operations at two plants in India this week due to a fire at a major supplier facility in that country. However, the company has not indicated whether it anticipates any compounded impact on its overall production volume as a result of the disruptions in the two countries.