Daihatsu, the oldest Japanese automaker on Thursday said that it has canceled overtime at its mainstay production base in Osaka (headquarter) and at a plant in Kyoto, concerned that parts supplies from Thailand may be disrupted because of the severe flooding there.
The announcement came shortly after Toyota, the largest Japanese automaker announced that has canceled overtime production planned for this week at auto-assembly plants in Indiana, West Virginia and Canada as floods in Thailand are creating problems.
The company estimates it will lose 6,300 units due to the cutback, spokeswoman Shiori Hashimoto said.
“A car has 20,000 to 30,000 parts, and production will not be complete if even one part is missing,” he said.
Thailand’s largest automobile manufacturer is facing the worst damage in the sector, and the situation is causing a delay in orders.
The damage from floods in Thailand is spreading to more of the world’s biggest manufacturers as supply chains falter and break under the weight of the spreading disaster.
Daihatsu operates a total of 6 factories and has 11,873 employs.