Nissan, Honda Provide Production Updates As Floods Ravage Thailand

As the flooding in Thailand continues, automakers with plants in the area, as well as suppliers, are being forced to reevaluate their production schedules, and in some cases, suspend it entirely.
Honda and Nissan were two of the manufactures to provide updates on production levels this week due to the natural disasters.
Starting with Honda, as the flooding continues to spread, a few of the automaker’s suppliers in Asia are currently unable to maintain parts production. Consequently, the flow of parts to Honda’s production operations in North America has been interrupted.
Though just last year, 87 percent of the Honda and Acura automobiles sold in the U.S. were produced in North America, a few critical electronic parts are sourced from Thailand and other regions of the world, proving to be a problem as floods rage across the Asian country.
The company may even be forced to delay the December release date of the 2012 Honda CR-V by as much as several weeks. The revised on-sale date will be announced in the near future, the company assured the public.
Due to the shortage of parts, Honda will also adjust production, starting Nov. 2.
First, Honda explained it will temporarily adjust production at all six of its auto plants in the U.S. and Canada. The company anticipates that this situation will require adjustments for the next several weeks.
Moreover, it was announced production as a whole will operate at approximately 50 percent of the original plan through Nov. 10.
“Subsequent adjustments will be announced as they are determined based on the parts supply situation,” officials noted.
Concerning the automaker’s employees, Honda has canceled all Saturday overtime work though November and has declared Nov. 11 a non-production day.
That said, Honda noted that non-production days will continue to be treated as “no pay, no penalty,” meaning Honda associates can report to work, use a vacation day, or take the day off without compensation or penalty.
“Honda deeply regrets any inconvenience this may cause to its customers, and is working closely with its suppliers and operations throughout the world to overcome this situation,” officials stressed.
Impact on Nissan Operations
The flooding in the areas surrounding Bangkok has also been the cause of supply chain disruptions for Nissan, as well.
Though the automaker’s Nissan Motor Thailand plant in Samut Prakan remains unaffected by the flood, production at the plant will remain suspended until Nov. 4, due to shortages in parts supply.
The company also noted all “possible measures have been taken to strengthen the plant’s flood defenses.”
At this time, the production hold at the Sumat Praken plant has not affected production at facilities outside of Thailand.
“Nissan is working closely with its suppliers to resume parts supply and return to production as quickly as possible in order to minimize any inconveniences to our valued customers,” official stressed.
Toyota’s Update
Reported by Auto Remarketing this past Friday, Toyota has also updated their production schedue, due to the natural disasters.
The company reported that vehicle production plants in the United States, Canada, South Africa, Indonesia, the Philippines and Vietnam will adjust production for this week.
The automaker also revealed late last week the production adjustment at its plants in Japan had been extended through Oct. 29.
Moreover, 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,” officials noted.
To read more, see the Auto Remarketing story here.