Thailand’s vehicle manufacturers announced further production cutbacks as the size of the rebuilding task in Japan in the wake last month’s devastating earthquake and tsunami becomes clearer.
Toyota Motor (Thailand), the country’s largest automaker, said it will cut output by up to 70% until 4 June, in response to parts shortages from Japan – particularly for vehicle electronics.
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Other automakers have also announced production cutbacks, including Isuzu Motor, which will cut output by half until the end of May at least. Honda Motor has also reduced output at its assembly plants in Ayutthaya.
Of the major Japanese automakers in Thailand, only Mitsubishi Motors (Thailand)’s production so far has remained unaffected.
The Thailand Automotive Institute (TAI) estimates the production loss in May and June at around 150,000 vehicles – or 50% of planned output, valued at around THB75bn (US$2.5bn).
Toyota Motor has said production in Japan will begin to recover in July, but that operations will not be normalised until the end of the year. The company has so far announced production cutbacks in Japan, Europe, USA, China and other Asia countries, and Australia – all of which depend on parts imported from Japan.
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By GlobalDataThe company said it wants to reduce supply chain risks in future by developing alternative, back-up suppliers; standardising more parts across different models; and by relocating more parts suppliers closer to its vehicle assembly plants.
