Severe flooding and heavy rainfall have forced major automakers to halt production due to supply chain disruptions.
Operations disrupted
In the last week of September, heavy rainfall in several areas of Thailand has caused severe flooding. Some affected industrial areas recorded more than 320 mm of rain over three days, forcing major vehicle manufacturers such as Toyota, Honda, Mazda, and Ford to suspend production for the time being.
Independent Commodity Intelligence Services (ICIS) reported 1,267 industrial and business establishments across 40 provinces were affected, including 52 factories. The Ministry of Industry estimated total of THB 22.2 million (AUD 946,130) in damages so far. Separately, Finansia estimated that total economic damage could reach THB 20-40 billion (AUD 1.8 billion) as several provinces remain submerged in floodwater.
Carmakers’ responses
Supply chain routes have been disrupted across the country, leaving several manufacturers to take their own approaches to production suspension.
Honda Automobile Thailand suspended operations at its Prachinburi and Ayutthaya facilities from 2 to 6 October. The company has allowed its employees to take leaves due to safety concerns.
“The company has temporarily suspended vehicle production at the Prachin Buri and Ayutthaya plants from Oct 2 to 6 because parts suppliers have been unable to deliver components required for vehicle production after being affected by flooding, particularly in Chonburi and Rayong provinces,” said President and CEO Koji Iwanami.
Production resumed on 7 October, with Honda allotting overtime shifts to compensate for lost production time and output during the safety break. Honda’s suspension period and plan also applies to AutoAlliance Thailand (AAT), a facility co-owned by Ford Motor Company and Mazda Motor Corporation.
Toyota Motor Thailand paused operations at its three main assembly plants — Samrong, Ban Pho and Gateway — as well as a Toyota Auto Works facility. Toyota later announced a temporary production halt at Samrong, Ban Pho and Gateway from 5 to 10 October, subject to conditions.
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