Honda warns of longer Thai flood impact on N America
(Reuters) - Honda Motor Co (7267.T: Quote) said production at its plants in Canada and the United States would face further disruption over the next few weeks due to a shortage of parts from flood-hit Thai suppliers.
Honda, which withdrew its annual earnings forecast late last month citing uncertainty in currency markets and the Thai floods, said it expects to make adjustments in output at all of its six plants in North America.
Thailand's worst floods in 50 years have affected hundreds of manufacturers. About one-tenth, or 35 of Honda's tier-one suppliers for cars in Thailand, have been flooded, causing production disruptions across Southeast Asia, Japan and the United States.
Late last month, Japan's third-biggest automaker had said its North American production would be half of its original plan from November 2 through November 10.
In a statement on Tuesday, Honda said some plants would produce at rates above the previously announced levels through November 25 in Canada and through November 23 in the United States.
However, Honda said it had made significant progress in finding alternative manufacturing facilities and new suppliers for parts.
The company, known for its popular Civic and Accord models, said the 2012 Honda CR-V crossover will be launched before the end of this year. It had earlier said the sale date may be delayed by several weeks.
Earlier in the day, Toyota Motor Corp (7203.T: Quote), the world's biggest automaker, withdrew its annual profit guidance as Thai floods threaten output.
Once the world's most envied and profitable automaker, Toyota has lost its shine against domestic rival Nissan (7201.T: Quote), which a Toyota executive said may have proven more adept at dealing with both the earthquake and the floods affecting both companies this year.
(Reporting by Maneesha Tiwari and Bhaswati Mukhopadhyay in Bangalore; Editing by Saumyadeb Chakrabarty)
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