The floods that recently wreaked havoc in Thailand and managed to enter the Honda Motor Company’s territory, continues to hurt the company as it claimed to disrupt the operations at its fourth continent as well. On the other hand, Toyota Motor Corporation is heading towards normalcy though taking small steps.
Thailand's worst floods in half a century have come down heavily on Honda, while the other Japanese auto makers have a scope to recuperate soon. Its plant, with a 2,40,000 units per year capacity, and about 35 of its tier-one suppliers have been submerged by the flood water.
A spokesperson for Japan's third-biggest auto maker said that the company had started curtailing its output in Brazil this week, in view of a reduction at its factory in Britain from 31st October.
The floods ravaged hundreds of parts suppliers, compelling many auto makers to shut down their operations in the country and bring down the production capacity elsewhere.
Japanese auto makers, which subjugate the Southeast Asian market, were crippled by the catastrophe at a time when they started to work extra hours and days. The move was made in a bid to compensate for the massive production losses caused by the 11th March earthquake and tsunami in Japan.
Honda's production in North America would be affected for several more weeks, the company said on Tuesday. It had previously stated that production at several Asian factories, including Japan would also be lowered.
Honda, however, has not shared any details regarding the amount of production cut. Both Toyota and Honda have withdrawn their profit forecasts for the year to March, seeing the unpredictable production at the plants.
Toyota President Akio Toyoda said that the company, as of now, is waiting for the right time to resume its production in Thailand, amidst announcements of restarting partial operations at three factories in the country. Toyota also added that it would continue production at reduced levels in Asian countries, excluding Thailand, and in South Africa next week.
As a matter of fact, Nissan Motor Company, Japan's second largest vehicle maker, confirmed to loose on about 60,000 vehicles output, with a partial restart planned in Thailand from 14th November.
Thus, with the shares of Japanese auto makers suffering a nosedive in Tokyo, the active and passive players are currently sailing on the same boat.
