The Nikkei business daily reports that Japan’s Honda Motor Co may keep its Thailand factory offline for about six months due to severe flooding.
The production center outside of Bangkok has capacity to produce 120,000 vehicles per year, but has been closed since Oct. 4.
A Honda spokesperson said the company was considering whether to send parts from other countries to help restore production.
Honda’s production plant in Ayutthaya province is completely under water, while suppliers spread across several flooded industrial estates especially in Pathum Thani and Ayutthaya provinces, which account for 15-20 percent of parts production in Thailand, have also ceased to operate.
“The situation in Thailand is very grim. It is likely to have an impact. We are still assessing its impact,” Sen said.
“Capacity utilization in Japan is already high to meet post-earthquake recovery demand, so Honda’s Japanese plants may not be able to supply sufficient volumes,” Kunugimoto said in his report.
In addition, Honda Motor Co. postponed the launch of a new model of its Life minicar in Japan due to difficulties in obtaining parts from its suppliers.
All makers suffer from parts shortages at this moment. Over 370 people have been killed so far due to the flooding.