Thai Flooding Disrupts Japanese Auto Production
TOKYO, JAPAN — Toyota and other major automakers have begun scaling back production because of parts shortages from suppliers in flood-afflicted Thailand, just months after Japan’s own supply chains were decimated by a mammoth earthquake and tsunami.
The production woes stemming from Thailand’s worst flooding in five decades — which has wiped out hundreds of factories in recent weeks — come just as Toyota and others bounce back from the March 11 quake disaster that destroyed autos parts suppliers in Japan’s northeastern Tohoku region and upended car production around the world.
The disruptions from the two similar disasters are prompting manufacturers to reconsider how they select suppliers of parts for their vehicles: Risks can be lowered if parts manufacturers are spread out over more regions.
“One of the lessons we have learned from Tohoku is that we don’t want to have one single supplier for our components,” Nissan Motor Co. spokesman Christopher Keefe said Wednesday, echoing views repeatedly brought up in the industry in recent months.
Nissan was still assessing the damage from the Thai flooding, but its vehicle plant near Bangkok was unaffected so far, he said.
Toyota, Japan’s biggest automaker, suspended overtime work from Monday to Friday at four domestic Toyota factories and seven group companies that assemble cars and trucks. The company estimates it will lose 6,300 units due to the cutback, spokeswoman Shiori Hashimoto said.
That’s on top of the estimated 37,500 units in lost output through Oct. 21 from its three assembly plants in Thailand, which have been shut down since Oct. 10. They will remain suspended until Friday, Hashimoto said.
Thailand, where Toyota’s pickup trucks are popular, is a key production hub for the company. The biggest disruptions in Japan are coming from Thai parts suppliers, she said. Toyota’s own parts factory there has reduced shipments.
“Many automakers are considering establishing alternative supply networks by temporarily moving production elsewhere or procuring parts from other places such as Japan,” said IHS Global Insight auto analyst Paul Newton.
Thai authorities warned that the capital could be swamped by up to 5 feet (1.5 meters) of water if flood barriers fail. Bangkok’s second-biggest airport was shut down by the flooding, and the government declared a five-day public holiday starting Thursday in affected areas to deal with the disaster.
Moody’s Investors Service said production had been disrupted at more than 400 Japanese companies north of Bangkok, including not only the automakers but also electronics makers such as Sony Corp., Canon Inc. and Toshiba Corp.
The Thai flooding is dealing another blow to the supply chain that had been hurt by the March quake and will delay a full return to pre-disaster output for the automakers, Moody’s said.
“All told, the floods have cut Japan’s targeted car output from Thailand by nearly 90%, but Thailand’s share of global car exports is just one tenth of Japan’s,” Moody’s said.
Moody’s said Honda Motor Co.’s forecast for 270 billion yen ($3.5 billion) operating profit will likely be reduced by 10%, but earnings for Toyota and Nissan are unlikely to be hurt very much.
Among developments at other Japanese automakers:
• Honda Motor Co., has temporarily ceased production at its Thai and Malaysian factories due to parts shortages. In Thailand, both its motorcycle and auto production has been halted since earlier this month, it said.
• Mazda Motor Corp.’s auto production in Japan was unaffected but vehicle production at its Thai joint venture with Ford Motor Co. was halted. Hiroshima-based Mazda was considering shipping in parts from China and Japan, it said.
• Mitsubishi Motors Corp. halted production at its Thai plant, which makes pickup trucks, sedans and a sports utility vehicle, but Japan production remained unchanged, according to spokeswoman Tomoko Kawabe.
OAKVILLE, ON – Ford Motor Company of Canada, Limited today announced the appointment of Dianne Craig as president and CEO, effective Nov. 1, as the company readies to mark its second straight year as the auto sales leader in Canada. Craig replaces David Mondragon, who has served as president and CEO since August 2008.
Automotive writers from across Canada gather annually in Niagara-on-the-Lake, Ontario for the Automobile Journalists Association of Canada's (AJAC) Test Fest. AJAC's Test Fest is a week filled with testing 57 new vehicles in 11 different categories to determine the finalists for the AJAC Car of the Year awards.
Infiniti announced it will expand its partnership with the Red Bull Racing Formula One team for the 2012 season. The announcement, made at the Korean Grand Prix, follows the win last weekend in Japan by Red Bull Racing driver and Infiniti global ambassador, Sebastian Vettel, of his second world drivers championship.
AURORA, ON - Canadian auto parts giant Magna International Inc. is being investigated by the U.S. Justice Department on an antitrust matter in the auto tooling industry.
Toyota Canada was part of hockey history Sunday by sponsoring the Winnipeg Jets‘ opening night game against the Montreal Canadiens.
MISSISSAUGA, ON --- Late this coming January, a fleet of over 20 Porsche Caymans and 911 Carrera models will again descend on the Mecaglisse snow- and ice-driving facility, marking the return of Porsche’s thrilling Camp4 Canada driving program to the Mont-Tremblant region. Defying the conventional wisdom that says sports cars should be garaged for the winter, Camp4 Canada will in fact be the first opportunity for North American customers to experience the next-generation Porsche 911 from behind the wheel. 
It’s not often that you take a tour of a manufacturer’s headquarters, but when I arrived it was definitely a sight to see. Honda’s new headquarters or “campus” as they call it is located in Markham, Ontario on 54-acre of land on Honda Boulevard that fronts Highway 404 just north of Elgin Mills.
Honda has always been a leader when it comes to the environment being the first manufacturer in Canada to sell hybrid vehicles and have won numerous ecoEnergy awards for the Civic Hybrid, CR-Z, and the Accord Sedan. Honda’s goal was for their new campus to environmentally match what they have achieved over the years with their vehicles. “It’s nice to showcase Honda’s DNA from the office side as well,” said Barry Holt, LEED® Project Leader. 
One of the most exciting things to check out is their office light structure. Honda uses occupancy sensors which can lighten, dim, or shut down based on whether any one is there. This efficient lighting design is a major contributing factor to their 32 percent consumption reduction in energy.
After many long meetings and adjustments especially considering the economic downturn, Honda is more than pleased with their environmental accomplishments and new Markham facilities that house their 500 workers. “It’s all about being plain, simple, and efficient – that’s the Honda way,” explained Holt. 
"In today’s uncertain economic times, the Ford Recycle Your Ride program means more people can now afford a new car with the latest in vehicle safety, fuel economy and smart technology," said David Mondragon, president and CEO, Ford of Canada. “It's a win-win-win for the consumer, the economy and the environment. I am proud to say that Ford of Canada has helped to recycle more vehicles than any other auto manufacturer.”
The FX’s interior also features black leather seating surfaces with red perforations and red piping. Unique interior touches include black-painted dash accents, brushed-metal surfaces, and satin shifter knob, door handles and air conditioning vent bezels. The package is available with all FX colors.