Honda to idle Thai factory for 6 months, report says
12 years, 5 months ago - 31 October 2011, Automotive News
Honda is likely to be forced to keep its Thai factory shut for about six months due to severe flooding, a move seen affecting 3 percent of its annual global car output, the Nikkei business daily reported on Sunday.
The automaker has suspended operations at its factory in central Thailand for weeks, with no sign of a restart.
The company believes it will have to replace most of its equipment and facilities that were submerged by floodwaters, the Nikkei said, citing a company executive.
Honda is the only Japanese carmaker whose Thai factory was inundated, the paper said.
The half-year suspension would affect production of more than 100,000 vehicles, it said.
Honda reports second-quarter earnings on Monday, with its profit forecast to fall 61 percent, according to a Reuters survey of 13 analysts. A supply shortage caused by a devastating March earthquake in northeast Japan has dragged on longer than it has for Honda's peers.
