Thailand Floods: The Automotive Industry Has Lost $13bn So Far
According to a report from just-auto.com, the automotive sector has lost $13bn so far, and the crisis is far from being over.
After the Japanese automakers, Ford announced that has suspended output in Thailand on parts-supply shortages, despite fears it may lose production of 30,000 vehicles.
“We are working closely with our affected suppliers to return to production as quickly as possible,” Lewis Booth, chief financial officer at the Dearborn, Michigan-based carmaker, said.
Toyota Motor Corp on Thursday said it would keep its Thai production suspended for a fourth week and reduce output in North America and South Africa.
Further, production from October 31 through November 5 will be adjusted based on an ongoing assessment of the parts supply situation at each individual production line the company said.
In addition, Toyota must now cut extra hours and weekend shifts at some plants from Indiana, West Virginia, Kentucky and Canada. These measures are meant to conserve parts as the company faced serious disruptions due to a shortage of parts imported from suppliers in Thailand.
Honda has suspended production since October 4. 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.
As the timing of the recovery of parts supply remains unclear, Thai Honda is scheduled to suspend its production until October 29. [updating]
A decision on production from November 7 onward will be made based on an assessment of the situation as it develops.
Thousands of inundated factories have also been shut down, putting more than half a million people temporarily out of work and disrupting global supply chains.
Thailand’s economy will grow less than 3 percent this year, damped by the effects of the disaster, central bank Governor Prasarn Trairatvorakul said Oct. 25.
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