Thailand: Honda cuts output on parts shortage

Gasgoo From Bangkok Post

Bangkok Post - Honda has confirmed that it will temporarily cut its automobile production in Thailand after Songkran due to the inadequate supply of parts and components from Japan.

"We will monitor the situation closely to determine when we can restart our production lines," said Jiraphol Rujiviphat, chief of public relations for Honda Automobile (Thailand) Co.

He could not say how this would affect annual output, but it plans to resume production immediately as soon as regular supply from Japan resumes.

About 110 of Honda's suppliers are located in the earthquake-hit zone.

Mr Jiraphol said every model would be affected equally, as the Accord, Civic, City, Jazz, Brio and CR-V are all made in Thailand.

Honda runs two auto plants in Ayutthaya at a maximum capacity of 240,000 units per year.

The company expects to be at full capacity by the third quarter due mainly to expected strong demand for the new Brio eco-cars, said Mr Jiraphol.

Honda is the second automaker to introduce an eco-car in Thailand after Nissan. The Brio was launched at the Bangkok International Motor Show last month, two weeks after the disasters in Japan.

The production delay may slow its delivery of the Brio.

Honda Automobile said that production of parts and components for export to Honda's production facilities in other regions except Japan had been restarted since April 4.

Current parts supplies can meet only 50% of Honda's automobile production in Japan.

Most suppliers in Japan are ready to restart their production, with only small businesses unable to resume. Honda said it would work together with these suppliers to help them restart production as well as look for opportunities to secure parts and components elsewhere.

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