It looks likely that Japanese automakers will suspend production at their manufacturing facilities in Thailand for at least a month, following the chaos brought about by the massive flooding that has hit the country.
According to the Nikkei, in addition to Honda, whose assembly plant there was inundated by the floods, both Toyota and Nissan – which were not hit directly by floods – will take at least a month to resume operations, according to sources.
Toyota and Nissan have currently shut down their plants due to parts shortages – the companies are looking to restart operations as quickly as possible, sending workers from Japan to assist. Given that the cluster of autoparts suppliers in Thailand are likewise affected by the floods, however, both companies will probably be forced to revise their production plans, just as Honda already has.
About 20 parts suppliers which Nissan works with in the kingdom have stopped operations; the company is sending employees from its procurement and production divisions in Japan to Thailand early this week to seek alternative sources of supply.
Elsewhere, Toyota – which halted production in Thailand last Monday – has dispatched a support team that is working to get production rolling again, and has also asked major parts suppliers in Japan to increase output of parts for models being built in the country.
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Hey Toyota , Honda, Mazda and all. Investing in Malaysia is not a bad idea you know.
Dream on ….. dude. Chronic flood at Thai is just a TEMPORARY setback. But NAP which design to protect jaguh kampong is the PERMANENT setback in our auto landscape.
mazda is already CKDing its M3.
Still no news of sourcing parts from Malaysia! This indicates we don’t have suppliers to supply the parts required by them, or our quality standard is fit for Jaguh Kampong only.
stupid immigrant, u know nothing!
Thailand has a policy that all CKD must use at least 40% local parts which are MADE IN THAI. they’re going to increase it to 60%. they can get parts from Japan or China but it will jeopardize the CKD ‘status’ of their cars.
Not thru guys , is not because of any ckd or afta , the point is thailand is almost set up as a centre hub of car assembly , all major good quality supplier is here and with good and strong logistic support .
another is workers , almost 99% is thais which better work quanlity and serious work for better future compare with immigrant worker at malaysia … combo , ind , bangla….
AFTA and CKD requirements in Thai is different issue…
Japan and China produced much bigger amount of parts than Thai, some reports mentioned that parts produced in Japan and China are cheaper than those made in Thai due to economy of scale. so why the Japanese produced parts in Thai if they can simply bring all of them from Japan / China and assemble in Thai? that’s due to Thai’s policy which require all CKD to use 40% parts made locally. if not, maybe the CKD status would become SKD and subjected to higher tax.
Come here invest in Malaysia! We have all the facilities for you! Nice people too. :)
Now it is time to buy proton or perodua car.ortherwise, wait a couple of months
I hope the Thais have same spirit as the Japanese. Hope they would recover quickly.
agree. They r the aggressive bunch…
come and build your factory here la. Forget about thailand. This time flood, after recover, heavy rain come still can flood also. Can build cars here and still can sell in SEA under afta. Malysian gov give pioneer status free tax summore. No need to be too eksyen one.
Malaysia also prone to flood….Monsoon, Its a matter of when it will happen!
Ironic we all think the same…came to Malaysia to invest….its typical for Japanese to do this,the have lost faith with our market policies,but still its is a good suggestion..hehehe
how would you feel if our country suffer the familiar fate and our neighbours do the same things to us by louring the investors !!!!!!!!!! Think deeply and rationally before making a statement !!!!!!!!!!!!!!
its all about business bro, dollar, cent and sense