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Toyota Cutting Production – Again – Due to Thai Flooding

Another setback for maker’s ambitious turnaround plan.

by on Nov.03, 2011

The production cuts will likely make it more difficult to find the new 2012 Toyota Camry.

Toyota’s ambitious turnaround plan is in for another setback, the maker issuing a terse news release indicating it will be forced to trim U.S. production due to parts shortages caused by flooding in Thailand.

The announcement comes just days after Honda revealed it will also have to slash production on its North American assembly lines due to flooding that has put much of Thailand underwater – drowning not only the big Honda assembly plant near Bangkok but a number of that country’s key automotive suppliers.

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“Flooding in Thailand continues to necessitate adjustments in Toyota’s production hours,” Toyoda said in its statement.  “To conserve the affected parts, all North American vehicle assembly plants will suspend overtime the week of November 7.”

While the production cuts at Toyota appear to be modest they couldn’t come at a worse time for the maker which lost more than 700,000 units of production worldwide since spring due to the earthquake and tsunami that devastated Northeast Japan.


Honda Cutting U.S. & Canadian Production By Half – Likely Delaying CR-V Launch

Maker hammered by devastating floods in Thailand.

by on Oct.31, 2011

Honda may have to push back the launch of the new CR-V crossover, it says.

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.

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“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.”