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Further Production Cuts at Toyota and Honda

No clear end in sight in wake of Thai flooding.

by on Nov.07, 2011

The Thai flooding could impact the launch of new Toyota vehicles like the next-gen Lexus GS.

Both Toyota and Honda acknowledge they will have to make further cuts in production in the wake of the disastrous flooding that has savaged Thailand.  The two makers source a number of key components – especially microprocessors and other electronic goods – from the Southeast Asian nation, which has been hammered by some of the worst flooding in decades.

Toyota announced today it will reduce production at its Japanese plants by 30% this month due to parts shortages, with additional cuts being made in the U.S. and other plants around the world.

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The cuts come at a particularly bad time for both Toyota and Honda.  The two makers collectively lost more than a million units of production due to the earthquake and tsunami that struck Japan on March 11 leading to an earlier shortage of critical parts and components.


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.