Honda cuts production in Thailand by 40%

[webfact]

Honda cuts production in Thailand by 40%

TOKYO, May 23, 2014 (AFP) - Honda Motor said Friday it has cut production in its Thai plant by 40 percent, blaming a drop in demand, the day after the country's army chief seized power in a military coup.

"We have cut the volume of production to 60 percent of the plant's annual capacity of 300,000 units, as we forecast a fall in demand," a Honda spokeswoman told AFP.

"But this decision is not rooted in the political uncertainty in the country," she added.

Vowing to halt months of political bloodshed, coup makers led by the tough-talking army chief on Thursday declared a nationwide night-time curfew and ordered masses of rival demonstrators off the streets.

On Friday military leaders summoned more than 100 prominent figures from rival political camps.

Honda and its rival Toyota said they had been forced to close their factories at night in Thailand in order to comply with the curfew.


-- (c) Copyright AFP 2014-05-23

[Thailand]

Perhaps the first of many to consider relocating, not exactly the first major disruption to production in the past few years?

[huangnon]

Honda suffered during the floods a few years ago. Their factory was basically wiped out at that time, without much in the way of preventative measures to stop it happening again.

This news is a big about-turn from two years ago: http://www.reuters.com/article/2012/03/31/us-honda-thailand-idUSBRE82U06B20120331

[keemapoot]

I suspect such a large cut-back may also result in the new production factory of their new small SUV, the Vezel, in Thailand to be delayed or cancelled.

http://www.thaivisa.com/forum/topic/690620-honda-vezel-is-coming/

[dabhand]

Maybe this is a direct result of the rebate scheme.

Artificially boost demand in one year and then watch the negative repercussions in following years?

[tullynagardy]

Yet more great news and proof the PDRC have scored a decisive victory.

This is the free Thailand we all dreamt of, not corrupted by the Shins.

Im off to watch the tv, Im off to read the paper, Im off for a night time stroll, im off to the bar... o bugger it, Im off to sing patriotic army songs. This is the life

[culicine]

Maybe this is a direct result of the rebate scheme.

Artificially boost demand in one year and then watch the negative repercussions in following years?

A lot of folks bought eco cars, but not a lot bought the honda brio. They shifted to other brands, and stopped buying larger cars in preference to smaller ones. Not anything to do with the coup. Nice try AFP.

[Thaiisnotrequired]

Every hour lost in line-stoppages in the car industry amounts to millions of GB Pounds. It is simply a wise decision to reduce output, although it will also be a very wise decision to up tools and relocate.

[dinger]

Most likely the first of many companies to rethink their position here

[Luk Mhee]

Honda is a crappy car anyway, they use too much recycled materials in the manufacturing process e.g. your coke or beer can that you drank has been recycled is somewhere in the body of the car, and if you “fart” next to the car it dents the body work.

[Gomyway]

This is for sure not only about Thailand even when it's a big hit against its economy.

If you like to know what's about new cars and remember the April in Thailand was 25.6% down you should use Google Earth with the search term: Zarate, Argentina.

Now visibly you can see a app. 1,700m x 1,000m large parking lot in the north of the city.

There are in addition a few containers and also a few discarded fire engines and construction machinery from Europe and USA but more of that are new cars of all manufacturers, mainly Japanese and many Volkswagen.

The there-scale ro-ro ferry is about 200m long, which turns on the Rio de la Plata around and brings more supplies. Many also come by land with new car transports.

Backed up at night is the brightly lit area with towers and armed guards. As you can see well the site is expandable, so it is probably necessary.

I think we should wake up and open the eyes to realize that the time of new car sales is going down (and maybe many other things also).

[SoFarAndNear]

Honda is a crappy car anyway, they use too much recycled materials in the manufacturing process e.g. your coke or beer can that you drank has been recycled is somewhere in the body of the car, and if you “fart” next to the car it dents the body work.

Actually I am happy to hear that they use recycled materials.

[neverdie]

Honda is a crappy car anyway, they use too much recycled materials in the manufacturing process e.g. your coke or beer can that you drank has been recycled is somewhere in the body of the car, and if you fart next to the car it dents the body work.

Too funny.

After examining the latest model of Honda Accord I agree with you.

Built to a price point. Higher percentage of plastic than mamas little electronic 'friend'.

Ugly too.

Toyota is no better.

As for the Honda news. Bad for Thailand.

Edited May 23, 2014 by neverdie

[ChrisY1]

Honda is a crappy car anyway, they use too much recycled materials in the manufacturing process e.g. your coke or beer can that you drank has been recycled is somewhere in the body of the car, and if you “fart” next to the car it dents the body work.

Smart fella Luk Mhee...........you seem to know your cars.........keep it up.....

I bet that you're a Tata man......!

[Rorri]

Honda is a crappy car anyway, they use too much recycled materials in the manufacturing process e.g. your coke or beer can that you drank has been recycled is somewhere in the body of the car, and if you “fart” next to the car it dents the body work.

So you're saying Hondas are made of aluminium? I think not.... but hey, many companies use recycled material...so I assume there is something wrong with you, maybe you've been recycled one time too many.

[joshstiles]

Most likely the first of many companies to rethink their position here

Not the first....Sharp is already considering whether to build a larger plant in thailand or somewhere that has cheaper milk and is safe for 20 year old foreign students who want to study in abroad for 2 semesters and don't want their parents to worry about grenade attacks...."yikes".........

[joshstiles]

Honda is a crappy car anyway, they use too much recycled materials in the manufacturing process e.g. your coke or beer can that you drank has been recycled is somewhere in the body of the car, and if you “fart” next to the car it dents the body work.

Smart fella Luk Mhee...........you seem to know your cars.........keep it up.....

I bet that you're a Tata man......!

I think it is a violation of the tv rules to spread false rumors...you'd better be careful what you say or you'll get a warning ....."yikes....grenade attack"

[Robby nz]

Yet more great news and proof the PDRC have scored a decisive victory.

This is the free Thailand we all dreamt of, not corrupted by the Shins.

Im off to watch the tv, Im off to read the paper, Im off for a night time stroll, im off to the bar... o bugger it, Im off to sing patriotic army songs. This is the life

It would seem you were so keen to get a kick in you forgot to read the OP.

"But this decision is not rooted in the political uncertainty in the country," she added.

[Thunder26]

In my humble opinion Thai market has got over saturated with cars thanks to the government scheme of reimbursing 100 K Baht to the first car buyers. And as it was said above people buy other brands. Nissan has seen a boost in their sales with Almera, now Juke and Teana. Toyota did well with new eco Yaris. Now Nissan and Ford come with cheaper SUVs that of course will take the SUVs market's share from Honda and Toyota.

[kimamey]

Honda is a crappy car anyway, they use too much recycled materials in the manufacturing process e.g. your coke or beer can that you drank has been recycled is somewhere in the body of the car, and if you “fart” next to the car it dents the body work.

I think if the body dents that's more to do with the thickness of the metal than anything else. My Honda doesn't seem much different to any other to me. A lot of the flexibility in the panels is down to weight saving and allowing certain parts to crumple in an accident.

[keemapoot]

In my humble opinion Thai market has got over saturated with cars thanks to the government scheme of reimbursing 100 K Baht to the first car buyers. And as it was said above people buy other brands. Nissan has seen a boost in their sales with Almera, now Juke and Teana. Toyota did well with new eco Yaris. Now Nissan and Ford come with cheaper SUVs that of course will take the SUVs market's share from Honda and Toyota.

Actually, your prediction has played out before in the US during times of economic distress, rising oil prices or other consumer belt tightening. Large SUV sales suffered and people switched to smaller more economical SUVs and cars. I'm not sure this is what is happening now in Thailand, but we are seeing the economy contract at the same time as this political upheaval, as well as loan defaults. Of course that first car program did not help things.

[kimamey]

In my humble opinion Thai market has got over saturated with cars thanks to the government scheme of reimbursing 100 K Baht to the first car buyers. And as it was said above people buy other brands. Nissan has seen a boost in their sales with Almera, now Juke and Teana. Toyota did well with new eco Yaris. Now Nissan and Ford come with cheaper SUVs that of course will take the SUVs market's share from Honda and Toyota.

The car tax rebate scheme wasn't such a bad idea to help after the flooding although there will be a slump afterwards but as always they seem to find a way to mess things up. It was open to fraud from the start with people who already had cars using someone else's name. In the UK, US and probably others as well it wasn't for first time buyers but needed you to exchange an old car for the new one to get the rebate. In the UK it had to be over 10 years old. Doing it this way means you don't end up with more cars just newer more efficient ones and it's far more difficult to cheat.

[Dellboy218]

Honda suffered during the floods a few years ago. Their factory was basically wiped out at that time, without much in the way of preventative measures to stop it happening again.

This news is a big about-turn from two years ago: http://www.reuters.com/article/2012/03/31/us-honda-thailand-idUSBRE82U06B20120331

Even before they were affected by the floods they suffered quality problems and bad publicity to the point that Honda Japan warned them they would halt some production and/or move it elsewhere.

[givenall]

Honda suffered during the floods a few years ago. Their factory was basically wiped out at that time, without much in the way of preventative measures to stop it happening again.

This news is a big about-turn from two years ago: http://www.reuters.com/article/2012/03/31/us-honda-thailand-idUSBRE82U06B20120331

May be also they do not see any more help from the government like the first car buyer incentive,

[gchurch259]

From my view point the biggest problem with sales of new cars here is the VERY VAT TAX. I bought my wife a new Honda Civic 2.0 and because of the VAT I could have bought two in USA for the same price, and they make them in Thailand.

They are always catching some hot shot cheating and not paying the VAT. The Government was hurting it's on people, not just Farangs. The dealer on Rama II Road did not even see me until my wife had made the deal.

Enough, time to go to bed nothing good on TV !!

Jerry

[espinoza]

Burma is an clear option here. Cheap labour cost, even cheaper then Thailand. That`s what Honda and other Japanese companies care about. Just like Apple.

[Baerboxer]

Yet more great news and proof the PDRC have scored a decisive victory.

This is the free Thailand we all dreamt of, not corrupted by the Shins.

Im off to watch the tv, Im off to read the paper, Im off for a night time stroll, im off to the bar... o bugger it, Im off to sing patriotic army songs. This is the life

The tullynagardy version of history!

Who was it who mismanaged the floods in 2011 again? Which administration was in power? What happened to all the money spent on "improvements" that no one ever saw etc etc.

You might dream of a free Thailand without a democratic government. Most wouldn't. But they'd want an honest government too. Something alien to you it seems.

But,but.but they were elected. Sure were. And they broke the law and paid the price.

[NeverSure]

Burma is an clear option here. Cheap labour cost, even cheaper then Thailand. That`s what Honda and other Japanese companies care about. Just like Apple.

I think the writing was on the wall when the US and Japan bought very large tracts of industrial land at Yangon, Burma (Myanmar) and announced that they would build Myanmar a deep sea port. Japan forgave a huge debt in the deal.

YS was humiliated because she had been boasting that a new deep water port would be built farther down the coast, across from Bangkok. Her plan was that this would cause land between Bangkok and Myanmar to become valuable industrial land for foreign investors to use.

Japan and the US completely snubbed YS, not announcing the meeting, but scores of corporate leaders from Japan and the US were there. YS found out about it the way the rest of the world did, and had egg on her face.

I thought at the time that perhaps this was the beginning of "enough" with Thailand. BTW I think this was after the new minimum wage hike.

[Chris Lawrence]

A timely announcement.

But only on TV can we see the relationship of Honda slowing down and a 'fart'. Mind numbing?

Burma Generals may be able to pitch a better work model with bigger carrot to get industry to move. Or Laos, Cambodia or Vietnam. These countries also have some very rich mineral deposits that are just been discovered. With industry comes money and opportunity; with new industry comes new money which means fatter Generals.

Thailand's delimma is South-East Asia's opportunity

Hope General Prayuth sees the wood for the trees. Needs to make unbiased decision and make it quick, not only for his country but also for the international scene. If not others will come. His and Thailand field of dreams may soon be swallowed up.

[AYJAYDEE]

Honda is a crappy car anyway, they use too much recycled materials in the manufacturing process e.g. your coke or beer can that you drank has been recycled is somewhere in the body of the car, and if you “fart” next to the car it dents the body work.

please upload a scan your degree in mechanical and/or metallurgical engineering for us

Edited May 24, 2014 by AYJAYDEE