FILE PHOTO: Toyota Motor Corp's logo on Estima Hybrid model is pictured at its headquarters in Tokyo, Japan, February 6, 2017. REUTERS/Kim Kyung-Hoon/File Photo

 

BANGKOK (Reuters) - Japanese automaker Toyota Motor Corp has since earlier this week suspended vehicle production at three of its manufacturing plants in Thailand due to a parts shortage, the company said on Thursday.

 

Toyota Motors Thailand temporarily suspended vehicle production at its Ban Pho Plant on Tuesday, and at its Samrong and Gateway Plants on Wednesday, the company said in a statement. Toyota has a production capacity in Thailand of 550,000 vehicles per year, according to its website.

 

"The production operation for the next week will be determined at a later stage," said the statement, which added that the current suspension was in effect until Friday.

 

The factory closures in Thailand were due to a shortage of parts caused by the pandemic, it said in a separate statement.

 

A Toyota factory in Japan's Aichi Prefecture will also suspend production on July 29-30 and Aug. 2-4 because of the part shortages, the automaker said on Thursday.

 

The suspensions in Thailand were first reported by Nikkei Asia earlier on Thursday.

 

A series of coronavirus clusters among Thai factories in June have raised concerns for the country's export sector.

 

Thailand is Asia's fourth-largest autos assembly and export hub for some of the world's largest carmakers such as Honda and China's Great Wall Motor. The industry accounts for about 10% of Thailand's GDP and manufacturing jobs.

 

Auto exports have also been a bright spot for Thailand as it tries to restart the pandemic-hit tourism sector.

 

Domestic car sales are also rebounding, up 15% in June from the same period a year earlier.

 

Thailand on Thursday reported a record 13,655 coronavirus infections and 87 deaths as the Southeast Asian country tightened travel restrictions to curb the latest outbreak.

 

Over 93% of total 453,132 confirmed infections and 3,697 fatalities occurred after April this year.

 

-- © Copyright Reuters 2021-07-22

 

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Is it time to worry yet?

I think I might move some Thai assets offshore in the morning. 

7 hours ago, snoop1130 said:

The industry accounts for about 10% of Thailand's GDP and manufacturing jobs.

So, with 20% tourism gone and cars on the way out, that could be moving towards 20-30% GDP gone - time to recalculate that growth target to 0%/negative  again

This is what I'm calling an 'unexpected closing', I've mentioned this phenomenon before regarding restaurants and other places which suddenly close for a short period of time with no warning and normally not much in the way of an 'excuse' given.

 

If anything suddenly closes down right now then there's pretty much only one reason.........and it ain't 'part shortages'

 

3 hours ago, ukrules said:

This is what I'm calling an 'unexpected closing', I've mentioned this phenomenon before regarding restaurants and other places which suddenly close for a short period of time with no warning and normally not much in the way of an 'excuse' given.

 

If anything suddenly closes down right now then there's pretty much only one reason.........and it ain't 'part shortages'

 

There's a major world-wide shortage in chips used in the electronics. It is affecting car production everywhere and has put up the price of computer CPUs as well.

 

4 minutes ago, mrfill said:

There's a major world-wide shortage in chips used in the electronics. It is affecting car production everywhere and has put up the price of computer CPUs as well.

 

My azz......There may well be a chip shortage but its a 100% planned chip shortage, kind of like the gas shortage of the 70s, lol......... Chip production could meet demand if only they were allowed too.....

51 minutes ago, mrfill said:

There's a major world-wide shortage in chips used in the electronics. It is affecting car production everywhere and has put up the price of computer CPUs as well.

 

Just read about a shutdown of a BMW factory in Germany for same reason.

One of many such reports.

Certain computer parts also seem to run short.

With car parts made globally the supply chain has to run perfectly, doesn't take much to bring everything to a halt.

The PM is leading the vaccine distribution, covid response and is managing the economy.  All hail the chief.  Have to love Juntas.

47 minutes ago, hotchilli said:

With car parts made globally the supply chain has to run perfectly, doesn't take much to bring everything to a halt.

And not just Car parts are made with a Global Supply Chain.

This is the main reason why Countries are seriously looking at a " bring it Home Policy ". Not just because there is more control over the Supply Chain, but also to utilize JIT, MInMax and other production processes.

You add tom this the sometimes very poor quality of product, and " bring it Home " looks very attractive.

Toyota last year added a new Plant in SE Asia. But it was not in the EEC of Thailand , as the Gov,t said it would be.

It was over the border in Poipet, Cambodia

Toyota said that it was no problem to drive their Exports by road for just 4 Hours from Poipet to the Ports of Thailand for the Export

At this juncture, I think the Thai Exports are going down the gurgler, and just not Vehicle Exports, and as the only sector that is producing GDP for the Government coffers, this spells disaster.

5 hours ago, ukrules said:

If anything suddenly closes down right now then there's pretty much only one reason.........and it ain't 'part shortages'

 

Actually it is the parts shortage. There are shipping delays and backorders galore because of covid. I would probably agree with your statement if I didn't know better, but wife works for Japanese company supplying parts and one of their customers is Toyota. They are very, very busy.

The price you pay for sourcing parts globally.

Make them at home, this would not be so much of a problem.

But Corporatocracy Rules

That means a partial shutdown.

 

There a big employer.

7 hours ago, ukrules said:

This is what I'm calling an 'unexpected closing', I've mentioned this phenomenon before regarding restaurants and other places which suddenly close for a short period of time with no warning and normally not much in the way of an 'excuse' given.

 

If anything suddenly closes down right now then there's pretty much only one reason.........and it ain't 'part shortages'

 

It's quite possibly is a parts shortage. The global semi-conductor shortage is affecting the automotive industry hard. The top model Hilux and Corrola Cross with their more advanced safety tech have been affected the most.

2 hours ago, Katipo said:

It's quite possibly is a parts shortage. The global semi-conductor shortage is affecting the automotive industry hard. The top model Hilux and Corrola Cross with their more advanced safety tech have been affected the most.

Don't agree that they are "Advanced"

More complicated - more to go wrong - for sure.

3 hours ago, Cake Monster said:

And not just Car parts are made with a Global Supply Chain.

This is the main reason why Countries are seriously looking at a " bring it Home Policy ". Not just because there is more control over the Supply Chain, but also to utilize JIT, MInMax and other production processes.

You add tom this the sometimes very poor quality of product, and " bring it Home " looks very attractive.

Toyota last year added a new Plant in SE Asia. But it was not in the EEC of Thailand , as the Gov,t said it would be.

It was over the border in Poipet, Cambodia

Toyota said that it was no problem to drive their Exports by road for just 4 Hours from Poipet to the Ports of Thailand for the Export

At this juncture, I think the Thai Exports are going down the gurgler, and just not Vehicle Exports, and as the only sector that is producing GDP for the Government coffers, this spells disaster.

Germany for one is drastically ramping up domestic chip and battery production facilities and supply chains... though it's a long term program ... 

It's stated government and commercial policy to become less dependent on outside suppliers, especially in Asia ...

5 hours ago, redwood1 said:

My azz......There may well be a chip shortage but its a 100% planned chip shortage, kind of like the gas shortage of the 70s, lol......... Chip production could meet demand if only they were allowed too.....

Golly. A conspiracy?

 

10 hours ago, RichardColeman said:

So, with 20% tourism gone and cars on the way out, that could be moving towards 20-30% GDP gone - time to recalculate that growth target to 0%/negative  again

The Bank of Thailand has delegated that task to TAT so you can look forward to a positive outcome.