Flood impact on Honda spreads, Toyota slowly recovers

Thu Nov 10, 2011 9:18am EST
 
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By Chang-Ran Kim, Asia autos correspondent

TOKYO (Reuters) - The impact of Thailand's floods on Honda Motor Co (7267.T: Quote) extended to a fourth continent even as Toyota Motor Corp (7203.T: Quote) showed further signs of recovery from the disaster.

Thailand's worst floods in half a century have hit Honda the hardest among Japanese automakers, with its 240,000-cars-a-year plant and about 35 of its tier-one suppliers under water.

A spokesman for Japan's third-biggest automaker said on Thursday the company had started to cut output in Brazil this week following a reduction at its factory in Britain from October 31.

The floods inundated hundreds of parts suppliers, forcing many automakers to halt work in the country and reduce output elsewhere.

Japanese automakers, which dominate the southeast Asian market, were hit just as they were beginning to work extra hours and days to make up for massive production losses after the March 11 earthquake and tsunami in Japan.

Honda's production in North America would be affected for several more weeks, the company said on Tuesday.

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

Honda 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 Both Toyota and Honda have withdrawn their profit forecasts for the year to March, citing uncertainty about production.   Continued...