Bloomberg News

Thailand May Cut Auto Target on Floods, Industry Group Says

October 12, 2011

Oct. 12 (Bloomberg) -- Thailand may cut its forecast for auto production this year because the nation’s worst floods in more than 50 years have disrupted supply chains and forced companies to shut down production, and industry group said.

The industry will probably have to reduce its forecast for production this year from 1.8 million units, Thai Automotive Industry Club spokesman Surapong Paisitpatnapong said today by phone from Bangkok, without providing a new estimate.

“We have to see how long it takes for those companies affected by floods to resume operations,” he said. “If they suspend for too long, car companies may need to seek parts from other sources and that will also take some time.”

Honda Motor Co., Toyota Motor Corp. and Ford Motor Co. are among automakers that temporarily suspended production in Thailand after flooding in Ayutthaya province shut down autoparts factories.

To contact the reporter on this story: Suttinee Yuvejwattana in Bangkok at suttinee1@bloomberg.net

To contact the editor responsible for this story: Tony Jordan at tjordan3@bloomberg.net


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