Toyota Latest Auto Maker to Halt Thai Output Due to Floods

Toyota Thailand halts production at its three assembly plants as massive flooding dries up its parts supply.

The auto maker joins Honda Thailand, whose factory is under water, and Mazda Thailand, which is checking the situation with its parts suppliers, in stopping production.

Prius among vehicles Toyota builds in Thailand.

Toyota Thailand Executive Vice President Wutthikorn Suriyachantanano says in a statement emailed to WardsAuto the widespread flooding has affected some Toyota components suppliers, resulting in the vehicle-parts supply disruption.

Persistent rainfall since July has left central and northern Thailand under water.

“Toyota Motor Thailand has to temporarily halt all assembly production at three plants during Oct. 12-15,” Wutthikorn says. “TMT has been closely monitoring necessary data and information to assess the vehicle-parts-manufacturing situation.”

Toyota says it’s deeply concerned about flood victims and with its affiliates, including Toyota Dealer Club and Toyota suppliers, is delivering survival kits to victims 21 flood-affected provinces.

The auto maker also is making donations to support flood-relief efforts, as well as establishing rescue teams to help victims evacuate and relocate possessions.

“Other ways to provide further assistance are also under thorough consideration,” Wutthikorn says. “The company is assessing the situation in parts production and any developments will be announced.”

Honda says in a statement it is being affected by the parts-supply disruption from impacted suppliers and water damage at its factory. Production initially was suspended from Oct. 4-8 because of supply problems, and flood waters then invaded the plant property.

Due to difficulty in accessing the facility because of an evacuation order, Honda is continuing the suspension of production.

Media reports say hundreds of new vehicles were caught in the flood waters. Honda says it will make sure flood-damaged parts and vehicles do not reach the market.

“Honda will continue providing updated information on our future outlook while exerting a company wide effort to normalize our production as soon as possible,” the statement says.

The halt is a blow to Honda, which recently announced it was raising production at its plant to 1,000 units a day because its Japanese parts producers had recovered from the March earthquake and tsunami in Japan.

Industry Minister Wannarat Channukul says at least 900 Thai factories have been swamped by the floods, affecting more than 200,000 workers.

Wannarat tells the Bangkok Post manufacturers in Bang Wa (Hi-Tech) and Bang Pa-In industrial estates have halted operations to minimize damage in the event flood water inundates the industrial zones.

He says the government will discuss ways to rehabilitate the flooded factories at next Tuesday's cabinet meeting.

Federation of Thai Industries automobile club vice chairman Suparat Sirisuwannangkul says the flooding widely will affect the auto industry. With several parts makers in Ayutthaya’s industrial estates under water, auto makers will be forced to temporarily halt production.

“If the flooding continues, (this year’s) output target of 1.9 million (vehicles) will not be achieved, and the (annual) target will have to be lowered to less than 1.8 million,” he tells the newspaper.

Heavy monsoonal rains are forecast in the Central Region, the East and the upper South.

Nissan Thailand Vice President Piangchai Kaewsuwan says she already has begun talks with Wannarat on ways to rehabilitate the flooded parts of factories once the water recedes.

The Nation reports Prime Minister Yingluck Shinawatra is conceding it is futile to fight the rising water, saying her government's top priority now is to save lives. The death toll has reached 281

There are 26 provinces inundated with flood water and another six are under threat.