Japan Car Makers Lose 360,000 Vehicles In Thailand
It’s been a rough year for auto makers in Japan. First, an earthquake and tsunami took out facilities for Toyota and Subaru. Just when these and other Japanese companies were getting back to 100%, another devastating flood in Thailand has destroyed hundreds of thousands of vehicles. It’s a second big blow to these struggling car companies.
In fact, all 9 Japanese car makers shut down their Thai assembly plants. 8 of them closed due to component shortages, showing again that parts suppliers are a critical link in the production chain.
According to reports, the closing of parts maker Aisin Seiki’s plant “could result in a parts shortage that brings engine production to a standstill, impacting Toyota’s output of pickup trucks and other vehicles in Malaysia, Vietnam and other countries nearby.”
Nissan also builds their subcompact in Indonesia with parts shipped from Thailand. According to Reuters, 360,000 cars could end up missing when all is said and done.
Source: Reuters | TTAC
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