Ever so close to getting production – and inventories — back to normal after suffering for months from the impact of Japan’s March 11 earthquake and tsunami, Honda has announced it will once again have to slash production by half due to flooding in Thailand. The launch of the new 2012 CR-V crossover, traditionally the compact segment’s best-seller, “could potentially be delayed,” meanwhile, the maker said.
The worst floods in decades have crippled not only a key Honda assembly plant in the Southeast Asian nation but at least 10% of its Tier-One and numerous other parts manufacturers. That includes makers of microprocessors — critical components that were also rendered in short supply following the March disaster that crippled the primary plant of Renesas, the world’s largest producer of automotive microcircuits.
“It is anticipated that this situation will require adjustments for the next several weeks, the maker said in a press release, noting all six assembly plants in Canada and the U.S. will be affected. Though significantly shorter than the six-month impact from the Japan quake and tsunami it is a nonetheless serious setback, leading Honda Chief Financial Officer Fumihiko Ike to lament that, “To put it bluntly, we’re in a really tough spot.”