After it was forced to close its three factories from Thailand and to adjust the working program at five Japanese assembly plants, 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, where supply chain was blocked by severe flooding.
“Parts availability from Thailand is not predictable at this time and is changing with the continued severity of the flooding,” Toyota stated.
The three Toyota manufacturing sites in Thailand have not been damaged by the flooding, but are closed since Oct. 10 because of supplier disruption.
Other Japanese automakers, like Honda, Nissan, Mazda and Mitsubishi, operating in Thailand have also suspended their activity and are investigating the potential impact on other overseas plants.
According to the official forecasts, the floods will affect deeply Thailand’s auto sector, the biggest in Southeast Asia, as it will not be able to reach its 2011 output target of 1.8 million units. Toyota, Honda, Nissan, Mazda and Mitsubishi have suspended assembly – either because suppliers’ plants or their own factories are inundated by the rising waters.