Thailand's worst flood in 50 years has caused damages amounting to as much as US$ 6 billion and claimed the lives of more than 380 people. What began as an overzealous monsoon season in July of 2011 has swept 60 of the country's 77 provinces under flood water in the past few months. The natural disaster inevitably reached Honda Motor Co.'s factories in Thailand, putting its operations to a standstill. As a result, Honda Cars Philippines Inc. (HCPI) is temporarily suspending its local production starting today, November 3, 2011, due to the limited supply of parts coming from Thailand.
Following the announcement, HCPI officially sent out this message: “Honda deeply regrets any inconvenience this may cause our customers, and request their understanding during these times. Honda and its suppliers are devoting all our efforts to minimize the impact on our customers.”
HCPI imports models such as the Jazz, Accord, and CR-V from Thailand, which has stopped production since October 4, 2011. Locally assembled models, on the other hand, such as the City and Civic, which also relies on several imported parts, are likewise affected. HCPI has not announced when local production will resume.
Toyota Motor Corp. has also closed three of its factories in Thailand as an aftermath of the flooding, while Ford Motor Co., whose factory in Rayong province was not affected, suspended production for 48 hours to assess inventory and logistics.