Toyota, Honda say Thai floods may impact Prius production, U.S. vehicles

Automotive News reports that Toyota may experience production delays tied to widespread flooding in Thailand. The Japanese automaker relies on certain Thai components, including audio systems, diodes and condensers, that may see production shortages. Honda, too, has issued a statement that the rising waters are delaying production of some vehicles.

Such shortages have already caused three plants in Thailand to be shut down entirely and some of Toyota's facilities in Japan to scale back production. Now there's a chance that the squeeze may be placed on some North American Toyota plants. Currently, the automaker says that it's evaluating its supply chain to determine just how far-reaching the production delays will be but Green Car Reports notes that the Prius has been affected. Since late 2010, Toyota has built the world's most popular hybrid in Thailand.

The AN report indicates that Toyota is already considering cutting one day of Saturday work at its four North American facilities and contemplating additional overtime restrictions. As of right now, the automaker says it has enough parts in stock to continue production while its suppliers source components from Malaysia and the Philippines. All told, the flooding in Thailand has caused a restriction on around 100 individual Toyota components.
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About the Impact of Flooding in Thailand on Honda Operations

October 25, 2011 - Following is the most current information regarding the impact of the flooding in Thailand on Honda's operations.

Honda Automobile (Thailand) Co., Ltd. (HATC), the Honda automobile production subsidiary in Thailand (headquarter in Rojana Industrial Park, Ayutthaya), has suspended production since October 4, due to parts supply disruptions from suppliers impacted by the flooding. On October 8, the management of the Rojana Industrial Park issued an evacuation order and flood water was confirmed within the property of the HATC plant. Due to the inability to access its facility, HATC does not currently have a clear outlook for when production will resume.

Thai Honda Manufacturing Co., Ltd. (Thai Honda), Honda's motorcycle and power products production subsidiary in Thailand (headquarter in Bangkok), has suspended motorcycle production since October 11, and power products production since October 6, due mostly 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 October 29. As of today, no flood water damage has been confirmed within the property of Thai Honda.

Following is the most current information regarding the impact of the flooding in Thailand on Honda production operations outside of Thailand.

Automobile production plant in Malaysia (Honda Malaysia SDN BHD):
Starting today, October 25, production is being suspended due to parts supply disruptions from Thailand. The sales of models imported from countries other than Thailand will be continued.
Other Honda production plants:
The outlook for any possible future impact is currently being carefully confirmed and examined at each operation.

Concerning operations from today onward, Honda will make decisions while carefully monitoring the situation. Honda deeply apologizes for any inconvenience this may cause our customers, and requests their understanding during these challenging times. Honda and its suppliers are devoting all our efforts to minimize the impact on our customers.

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