Honda Closed, Toyota Cuts Japan Production from Thailand Floods. After Effects Continue to Worsen for Japanese Makers

AutoInformed.com

The new 2012 Chevrolet Colorado range has  single, extended and crew-cab body styles is the product of a five-year, $2 billion vehicle program developed across five continents for customers in more than 60 markets. Thai production is ongoing. 

Honda Automobile Thailand – HATC – continues to be shut down since October 4th because of the Thailand floods.  “Due to the inability to access its facility in, Ayutthaya , HATC does not currently have a clear outlook for when production will resume,” Honda said today.

Toyota Motor Corporation has also “adjusted” production in Japan this week due to Thailand parts shortages at least through Friday, as the after affects of the Thailand Floods – responsible for at least 300 deaths – continue to grow. Toyota thus far has lost at least 6,000 units, and its production recovery plan from the Japan Earthquake and Tsunami now appears to be threatened by the floods. Three Toyota plants in Thailand remain closed  at Samrong, Gateway and Ban Pho.

“A decision on production hours from October 29 onward will be made based on an assessment of the situation as it develops,” Toyota said today in a statement. (Read AutoInformed.com on: Thailand Floods – Worst in 50 Years – latest Tragedy to Hurt Auto Industry as Honda, Toyota and Ford Production Disrupted)

Japanese automakers led by Toyota, Honda Motor Co. and Nissan — are losing thousands of vehicles daily, according to the Japan Automobile Manufacturers Association. Thailand has an annual vehicle production capacity of almost 2 million units, extensive exports, as well as numerous component parts manufacturing operations.

In 2010 roughly 900,000 vehicles – 55% of total vehicle assembly in Thailand – were exported. The main export regions include Australia, New Zealand, Europe, Middle East, Mexico, South Africa and Brunei. Models exported now from flood affected makers include Honda Jazz, Civic, City, Accord, the Toyota Hilux pick-up, and the Ford Ranger pick-up, according to the Frost & Sullivan consultancy.

Thai Honda, Honda’s motorcycle and power products production subsidiary in Thailand, has suspended motorcycle production since October 11, and power products production since October 6, due to parts supply disruptions from suppliers impacted by the flooding. As the timing of the recovery of parts supply remains unclear, Thai Honda is scheduled to suspend its production until at least October 29. As of today, no flood water damage has been confirmed within the property of Thai Honda.

U.S. Honda operations will not be affected, a Honda spokesperson told AutoInformed. Honda group companies will provide approximately ¥280 million toward the relief and recovery efforts in Thailand where it has been doing business for 47 years.

Toyota has also stopped Thailand production while it sorts out supply problems. Toyota and Isuzu are likely to lose the next 2-3 weeks of production from parts shortages, with losses estimated at 30,000-35,000 and 10,000-15,000 units, respectively.

Ford’s joint venture with Mazda – AutoAlliance Thailand or  AAT – has suspended production through at least Saturday 29 October. AAT is located in an area of Rayong that has not been affected by the floods. However, a number of AAT’s suppliers operating in Ayutthaya province have been affected. Ford said it is working with them on a daily basis to assist recovery actions. Ford also said it will continue with a day-to-day assessment of manufacturing readiness to decide when production can resume, while declining to provide estimates of lost sales. AAT builds Mazda 2 and Ford Fiesta subcompacts, Ford Ranger and Mazda B-Series pickup trucks, and the Ford Everest SUV.

General Motors appears to be the automaker least affected thus far since its plant and suppliers are outside the flood affected regions.

About Ken Zino

Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn. He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe. Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap. AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks. Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.
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