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What happened to shut down Toyota’s production in Japan?

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Toyota Motor (7203.T) was ramping back production at its Japan-based factories on Wednesday after a computer system processing orders for vehicle parts broke down on Tuesday, forcing the closure of 14 assembly plants.

The disruption shut down a system that is at the core of Toyota's lean manufacturing, a way of reducing inventory and maximizing production efficiency that the Japanese automaker pioneered and its rivals have widely adopted.

It's not clear what caused the system outage, and Toyota has not provided details on what went wrong. The company said the cause was not a cyberattack, Reuters reported.

In February last year, Toyota also had to shut down the same 14 factories in Japan when one of its suppliers, Kojima Industries, which supplies plastic parts and electronic components to Toyota, said one of its file servers had been infected with a virus that carried an undisclosed threatening message.

That attack raised questions about the cybersecurity of Japan's supply chain.

Toyota's production has been recovering this year, so the outage could be potentially more costly than the 2022 shutdown.

Toyota's domestic output was up 29% in the first half of this year, the first such increase in two years. Toyota makes a full range of vehicles in Japan from the budget Yaris to its most expensive models, including luxury Lexus brand cars.

Toyota's production in Japan - about a third of its global output - averaged about 13,500 vehicles a day in the first half of the year, Reuters calculations showed. That excludes vehicles from group automakers Daihatsu and Hino.

Its average global vehicle sale price in the most recent quarter was equivalent to $26,384, based on its financial reporting. Using that as a proxy would mean a full-day of production at the 14 plants would be equivalent to $356 million in revenue.

Toyota has not said how or whether it will look to recoup the lost output.

Toyota essentially invented modern auto assembly with its "kanban" system for notifying suppliers of what parts are needed where and when to minimize inventory.

"Kanban" means signboard in Japanese, and the Toyota engineer and later executive, Taichi Ono, who developed the system drew inspiration from watching an American supermarket chain, Piggly Wiggly, manage its shelf stock on a trip to the United States in the 1950s.

Toyota's system of lean production and just-in-time parts delivery has been adopted across the auto industry and widely studied. It shifted from a system of printed cards that managed supplier workflow to an internet-based "e-kanban" system more than 20 years ago.

Toyota's kanban system, which relies on simple visual cues to organize workflow, has been adopted for other industries, including software development.

Koji Sato took over from Toyota Chairman Akio Toyoda as CEO in April.

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Russia fines Google more than the world’s total GDP over YouTube bans

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Russia has fined Google $2.5 decillion after the US tech giant took action against pro-Kremlin TV channels on YouTube following Moscow’s invasion of Ukraine.

Russia imposed a daily fine four years ago - a fine that has since swelled to an unprecedented level - ($20,000,000,000,000,000,000,000,000,000,000,000 - a 33-digit figure).

To put this into perspective, global GDP reaches an estimated $110 thousand billion (12-digit figure), according to the IMF.

Speaking to Russia’s TASS news agency, one expert, Roman Yankovsky from the HSE Institute of Education, said Google “clearly will not pay this penalty, and the Russian Federation will not be able to recover this money from the company."

Euronews reported that a short calculation shows that he is right.

Google's holding company, Alphabet, has a market capitalisation of slightly more than $2 trillion. Even with earnings of $80.54 billion from the last quarter, the tech giant doesn’t seem to be able to afford to pay the fine.

Google first barred pro-Moscow channel Tsargrad TV, which is owned by oligarch Konstantin Malofeev, four years ago.

At the time, Google was fined a daily penalty of 100,000 roubles and warned that amount would double every 24 hours if it went unpaid.

The original fine has been compounded by further penalties after Google eventually blocked a total of 17 Russian TV channels as a result of international sanctions, The Telegraph reported.

The tech giant now owes a staggering $2.5 decillion.

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Apple launches new iPad mini with AI features

Apple said it would roll out the first set of AI features in the U.S. version of the English language this month through a software update with iPadOS 18.1.

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Apple on Tuesday launched its new generation of the iPad mini packed with AI features including writing tools and an improved Siri assistant, as the iPhone maker races to boost its devices with artificial-intelligence capabilities, Reuters reported.

The new iPad mini is powered by Apple's A17 Pro chip, which is used in the iPhone 15 Pro and Pro Max models. With a six-core central processing unit, the A17 Pro would boost CPU performance by 30% compared to the current generation iPad minis and is central to running Apple Intelligence, Apple's AI software.

Apple said it would roll out the first set of AI features in the U.S. version of the English language this month through a software update with iPadOS 18.1.

The features will be available for iPads with A17 Pro or M1 chips and later generations, Apple said, adding it will roll out additional features including image-generation tools, Genmoji and ChatGPT-powered capabilities over the next several months, read the report.

Apple in September unveiled its long-awaited, AI-boosted iPhone 16 lineup, but with the AI features still in test mode, the company failed to excite some investors while early sales data raised some questions around demand.

Still, research firm Canalys on Monday said the iPhone 16 would help Apple's sales in the fourth quarter and drive momentum into the first half of 2025, after Apple reached a record high third-quarter shipments.

The iPad mini, starting at $499, is available for pre-orders starting on Tuesday and will begin arriving to customers and Apple store locations next week, Apple said.

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Iran sends satellites to Russia for rocket launch

In September, Iran carried out its second satellite launch this year using a rocket built by its Revolutionary Guards

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Iran has sent two locally made satellites to Russia to be put into orbit by a Russian space vehicle, the semi-official news agency Tasnim reported on Saturday, in the latest space cooperation between the two U.S.-sanctioned countries.

The development of Kowsar, a high-resolution imaging satellite, and Hodhod, a small communications satellite, is the first substantial effort by Iran's private space sector, the report said.

Russia sent Iranian satellites into orbit in February and in 2022, when U.S. officials voiced concern over space cooperation between Russia and Iran, fearing the satellite will not only help Russia in Ukraine but also help Iran monitor potential military targets in Israel and the wider Middle East, Reuters reported.

Kowsar could be used in agriculture, natural resource management, environmental monitoring, and disaster management, Tasnim said.

Hodhod is designed for satellite-based communications and could be used in remote areas with little access to terrestrial networks.

In September, Iran carried out its second satellite launch, this year using a rocket built by its Revolutionary Guards. 

The launch came as the United States and European countries accuse Tehran of transferring ballistic missiles to Russia that could be used in its war with Ukraine. Iran has denied this.

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