Honda’s dealers in Thailand may face bankruptcy image

Thailand’s worst floods in half a century creates serious problems to the automotive industry.

A large number of Honda dealers across Thailand are becoming increasingly concerned for the future of their businesses, as most of them face disruptions.

Within Thailand, two Honda plants in the Rojana Industrial Park have been fully submerged since Oct. 6, Jessada Thongpak, an analyst with IHS Global Automotive, said in a report today. “It may take until late 2012 to rebuild both plants,” Thongpak said.

On Tuesday, the Japanese automaker said that it will produce no vehicles at all at its six Canadian and U.S. assembly plants on Nov. 18, making it the second straight Friday with no production.

Auto production rates will vary by plant, but some will produce at rates above the 50 percent rate announced in the original slowdown plan, Honda said yesterday.

Honda, which suffered a 56 percent drop in July-September quarterly profit, has not given a profit prediction for the fiscal year that ends in March, acknowledging that the Thai flooding made that too difficult.

In the meantime, on Wednesday, Bangkok authorities widened an evacuation order in the city’s northern districts and moved to protect two industrial parks near the main international airport

Flooding caused by heavy rainfall has killed more than 500 people since July. The flood-waters have coursed down a river basin the size of Florida, with Bangkok at its southern tip.