Toyota stretches suspension of Thai auto production

Teni Sow | October 25, 2011 | 0 Comments

BANGKOK — Toyota Motor Corp. has extended its suspension of auto production in flood-hit Thailand and will cut back manufacturing elsewhere in Asia due to parts shortages.

Production at Toyota’s three plants in eastern Thailand stopped on Oct. 10 because the flooding has disrupted the supply of parts. Honda Motor Corp. has also been hurt by the floods, with its assembly plant north of Bangkok completely inundated.

Toyota said Friday that its production suspension will now remain in place through Oct. 28.

The automaker said in a statement that it will start to “adjust” production in other Asian countries from Oct. 24 due to possible delays in parts from Thailand – its main production base in Southeast Asia.

Toyota didn’t give any other details and couldn’t be immediately reached for comment. Kyodo news agency said the company has decided to reduce production in Indonesia, Vietnam and the Philippines.

Typhoon-driven flooding has whipsawed Thailand since late July, killing more than 280 people, affecting more than three quarters of the country’s provinces and inflicting billions of dollars in damage. Flood waters from higher ground in northern and central Thailand are now menacing the capital Bangkok.

Toyota’s Thai plants produced 630,000 vehicles in 2010 including popular models like the Camry and the Corolla. Thai production was more than 8 percent of Toyota’s worldwide production last year of 7.6 million vehicles.

Some of Toyota’s approximately 330 dealerships have stopped sales activities due to the flooding, the company said.

“The affect on sales is still being assessed,” Toyota said.

 

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