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6 years ago
UPDATE 1-Toyota extends output halt, reduction to next week on Thai floods
November 4, 2011 / 1:06 AM / 6 years ago

UPDATE 1-Toyota extends output halt, reduction to next week on Thai floods

* Says 3 Thai factories to be suspended next week too

* Output cuts in Japan, N.America, S.Africa and Asia

* Lost Thai output totals 69,000 vehicles from Oct 10 to Nov 5

* Japan output cut by 22,000 vehicles from Oct 24 to Nov 5

* Shares up 1.7 pct, in line with market

By Chang-Ran Kim

TOKYO, Nov 4 (Reuters) - Toyota Motor Corp said on Friday it would keep its three Thai factories suspended and output reduced in Japan next week, while also cutting production in North America, South Africa and some Asian markets due to the shortage of parts from flooded Thai suppliers.

The move was widely expected after rivals Nissan Motor Co and Honda Motor Co said the impact from the floods would last at least another week for Nissan and months for Honda, whose car plant is under water.

Thailand's worst floods in 50 years have affected hundreds of manufacturers and cut off the supply of about 100 components for Toyota, Thailand's top automaker with a production capacity of 650,000 vehicles a year at its three factories there.

Toyota, the world's biggest auto maker, said plans beyond Nov. 14 will be determined as the situation develops.

So far, a suspension of its three factories in Thailand has resulted in lost output of 69,000 vehicles between Oct. 10 to Nov. 5, and of 22,000 vehicles from a reduction in work in Japan between Oct. 24 and Nov. 5, a spokeswoman said.

Japanese automakers dominate the southeast Asian car market and the stoppages are set to eat into their profits just as they were beginning to ramp up output after supply disruptions from the March 11 earthquake and tsunami in northeast Japan.

Many car makers had also recently announced a slew of new investments in the region to meet booming demand.

Honda Motor withdrew its annual earnings guidance on Monday, blaming the floods in part.

Shares of Toyota, which will unveil its quarterly earnings on Nov. 8, were up 1.7 percent on Friday morning, in line with the broader market's 1.3 percent gain.

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