TOKYO Toyota and other Major automakers have begun the existence of production back due to lack of parts suppliers in Thailand, suffering from a glut of just after Japan's own supply chain was destroyed by a giant earthquake and tsunami.
Production woes stemming from Thailand's worst flooding in five decades has eliminated hundreds of factories in the last week comes as Toyota and others bounce back from March 11, quake disasters that destroy autos parts suppliers in Japan's northeast region of Tohoku and upended car production around the world.
Interference of two similar disasters that encourage manufacturers to reconsider how they choose the supplier parts for their vehicles: risk can decrease if the manufacturers that spread to more areas.
One of the lessons we learned from Tohoku is that we don t want to have one of our suppliers of components, a spokesman for Nissan Motor Co. 's Christopher Keefe said Wednesday, echoing views repeatedly brought up in the industry in recent months.
Nissan still assessing damage from the flood of Thai, but the vehicle plant near Bangkok are not affected so far, he said.
Toyota, Japan's largest car, suspended overtime work from Monday to Friday on four Toyota domestic factories and seven group companies that assemble cars and trucks. The company estimates it will lose the 6,300 units thanks to the cutback, the spokesman said Hashimoto Shiori.
That's on top of an estimated 37,500 units lost output through October 21 from the three plants in Thailand, Assemblies that have been closed since October 10. They will remain silent until Friday, Hashimoto said.
Thailand, where Toyota's pickup truck was popular, is an important production Center for the company. Japan's biggest distraction came from Thailand part suppliers, he said. Toyota's own the factories there have reduced the delivery.
Many automakers are considering alternative delivery network by establishing a temporary move of production elsewhere or procurement of parts from other places such as Japan, says IHS Global Insight automotive analyst Paul Newton.
Thai authorities warned that the mother could be flooded by 5 feet (1.5 meters) of water if the flood barriers fail. Bangkok's second-largest airport was closed by the flooding, and the Government declared a five-day holiday starting Thursday in the affected areas to deal with disasters.
Moody's Investors Service said production has been disrupted in more than 400 companies in Northern Japan from Bangkok, including not just cars but also electronic makers such as Sony Corp., Canon Inc. and Toshiba Corp.
Thai floods dealt another blow to a supply chain that has been hurt by the earthquake of March and will delay full return to the pre-disaster output for automobiles, Moody's said.
All told, the floods had cut Japan's automobile output of Thailand targeted by almost 90%, but Thailand's share of global exports of only one-tenth car from s Japan, Moody's said.
Moody's said Honda Motor Co. s to 270 billion yen ($ 3.5 billion) operating profit forecast is likely to be reduced by 10%, but earnings for Toyota and Nissan are unlikely to hurt very much.
Among the developments in the other car: Japan
Toyota and other Major automakers have begun the existence of production back due to lack of parts suppliers in Thailand, suffering from a glut of just after Japan's own supply chain