Tuesday 1 November 2011

Thailand floods disrupt Honda's car production

Japanese auto maker Honda will slash production at its plants in North America as suppliers in flood-ravaged Thailand are unable to deliver parts, the company said Wednesday.

  Local residents cross the floodwater in Bangkok. Japanese auto maker Honda will slash production at its plants in North America as suppliers in flood-ravaged Thailand are unable to deliver parts.


"As the flooding in Thailand continues, a number of Honda suppliers in Asia currently are unable to maintain parts production, which is disrupting the flow of parts to our production operations in North America," Honda said in a statement.

Most of the parts for Honda and Acura vehicles are sourced from North American suppliers, but "a few critical electronic parts" come from Thailand, it explained.

Starting on Wednesday, the company will cut in half its automobile assembly at all six of its plants in Canada and the United States, for at least one week.

The launch of the 2012 Honda CR-V could also be delayed "slightly," it said.

No layoffs are planned at any of Honda's North American facilities as a result of the disruption, the company added.

The Honda Civic is one of the best-selling cars in Canada and the United States.

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