Toyota slowly recovers from floods, Honda impact spreads

TOKYO Wed Nov 9, 2011 8:40pm EST

TOKYO Nov 10 (Reuters) - Toyota Motor Corp plans to bring back overtime at its North American factories next week in a partial recovery from the impact of the Thai floods, while Honda Motor Co said its supply shortage has spread across four continents.

Thailand's worst floods in half a century have inundated hundreds of parts suppliers, forcing many automakers to halt work in the country and reduce output elsewhere.

Honda, Japan's No.3 car maker, has been hit the hardest, with its own 240,000-cars-a-year plant and about 35 of its tier-one suppliers under water.

A spokesman said on Thursday Honda had also started cutting output in Brazil this week, following a reduction at its factory in Britain from Oct. 31, and an announcement earlier that North America will remain affected for several more weeks.

It had previously also said production at several Asian factories, including Japan from this week, would be lowered.

The company has not disclosed how much production has been cut. Both Toyota and Honda have withdrawn their profit forecasts for the year to March citing uncertainty over production levels.

Toyota said its North American vehicle plants will bring back overtime from Nov. 14, while its Indiana and Canadian factories will also work on Saturday, Nov. 19, as originally scheduled. It also said on Wednesday it would resume partial production at its three Thai factories from Nov. 21.

Toyota has yet to give an update on other Southeast Asian regions such as Indonesia, as well as South Africa beyond this week.

Shares of Japanese automakers fell in a broad decline in Tokyo on Thursday. Toyota fell 2.2 percent and Honda fell 1.8 percent, while the Topix index lost 2.4 percent.