Automakers resume production but parts still a problem
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Leading Japanese automakers have announced the partial resumption of production in Thailand after being forced to halt operations for more than a month after the worst flooding in decades disrupted their parts supply.
Mitsubishi Motors (Thailand) president Nobuyuki Murahashi said his factory had suspended production because of the floods and lost the ability to produce 23,000 units.
Production resumed Monday, he said, and the plant will operate seven days a week beginning in January, with 15,000 units targeted for production by March.
The company earlier targeted the production of 250,000 units for the year 2011, he said.
He said that floodhit autoparts suppliers have requested their subsidiaries in other countries, such as India and Indonesia, to supply components to Mitsubishi’s Thailand operations, while the mother company in Japan is also providing some missing components.
Despite severe flooding, the Japanese automaker expressed confidence in continuing its investment in the kingdom.
“Mitsubishi has invested in Thailand for 40 years,” Nobuyuki emphasised. “We are not thinking of relocating our production base because of the flooding.
Other Japanese carmakers also resumed production Monday, including Ford, Mazda, and Nissan, but not yet at full capacity as local autoparts suppliers must share in the distribution of a limited number of items to the companies, the company executive said.
However, the Honda factory in Ayutthaya province, severely hit earlier by floodwaters, remains closed.
