Massive flooding in Thailand is poised to hit U.S. auto output, with top Toyota executives warning that shortages of parts imported from the Southeast Asian country may interfere with production at the company’s North American assembly plants. hit the jump to read the rest of the story.
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Executive Vice President Shinichi Sasaki said the company is bracing for crimped supply of such Thai-built components as audio systems, switches, diodes and condensers.
The parts shortages have already shut Toyota’s three plants in Thailand and forced production cutbacks in Japan. The next impact may be felt at Toyota’s North American plants, he said.
“We don’t know how big the impact will be,” Sasaki told Automotive News on Wednesday, adding that the company was still assessing the status of the overseas supply chain.
Steve St. Angelo, executive vice president for North American manufacturing and engineering, confirmed separately that the company is considering canceling one day of Saturday work at four North American plants and studying further impact on overtime shifts. A decision was expected soon, he said.
Weeks of severe flooding have inundated Thailand’s industrial heartland and crippled the local operations of Japanese automakers that have made the country a major auto-making center and export hub.
