As Typhoon Hinnamnor exits South Korea, it is expected to pass the southwest of Japan according to the Japan Meteorological Agency.
Consequently, supply chains are all significantly affected as companies are suspending their businesses’ operations, placing emergency teams to immediately respond to the effects of the typhoon.
Car-makers like , and subsidiary Nissan Shatai are suspending production at plants in western Japan this week. Moving their vehicles from their plants to safer areas as they prepare their factories set to be hit by the typhoon. Moreover, Motor halt operations early on Tuesday and has transported its 5,000 manufactured cars from its factory in Ulsan to safer areas.
The Typhoon Hinnamnor is the second natural disaster to heavily impact Toyota’s production output as just last month, heatwaves in China also caused the automaker to suspend vehicle production at its plant in Chengdu facility in Sichuan province.
Due to the heatwave, electricity shortages prompted Toyota and other producers to suspend operations as local authorities tried to limit the supply of power and rationed industrial electricity consumption.
On the other hand, logistics and ports are also affected – shipbuilding companies are directly affected by the typhoon and are dealing with the disaster swiftly by creating response teams and moving their ships to safer areas.
Korea Shipbuilding & Offshore Engineering (KSOE) moved nine of its ships to the Yellow Sea starting Friday and closed on Tuesday morning. Furthermore, Daewoo Shipbuilding & Marine Engineering and Samsung Heavy Industries moved their ships out to the sea.
Samsung Electronics have stopped all ongoing constructions at sites and have done special check-ups on their facilities.
Like most other manufacturers around the world, disruptions in supply chain by pandemic-related parts shortages and logistics woes, this has heavily impacted Toyota where they have to increase raw material and labour costs, and not to forget the ongoing global chip shortage supply issue.
Toyota has revised down its 2022 global production target every month since May of this year. Despite this, July output decreased 8.6% from a year earlier to 706,547 vehicles. This is still below Toyota’s target of 800,000 units and the July 2021 output of 773,135 units. Most recently, Toyota announced a 28% decrease in Japanese production figures.
Nevertheless, Toyota said it expects September production to rebound globally to around 850,000 units as they plan to raise output through November, depending on supplies of parts and availability of staff.
Toyota intents to stick to its fiscal year production target of 9.7 million vehicles through March 2023 and has maintained its profit outlook.
Keyword: Typhoon Hinnamnor disrupts supply chains; Toyota, Nissan, Hyundai halts production