November 7th, 2011 
davidguide Detroit, MI, United States (AHN) – Honda Motor Co. has announced plans to cut production by half at its factories in the United States and Canada because of flooding in Thailand that affected auto parts production there.
It was the second time this year that Honda has cut production by 50 percent. The first time was when the March 11 earthquake and tsunami in Japan affected production of certain auto parts.
Honda officials said that although most of the parts for its autos are manufactured in North America, that some electronic parts come from Thailand or elsewhere. They will seek replacement manufacturers of the microprocessors manufactured in Thailand.
Thai automotive parts factories have been hit hard by widespread flooding that began in that country in July. The flooding has affected thousands of manufacturing plants in Thailand, forcing some of them to close.
Honda reported net profit fell by 55 percent to $770 million through the end of the second quarter. In addition, the uncertainty over availability of parts because of the flooding caused Honda officials to withdraw the forecast of expected earnings for the remainder of the year.
Closure of plants in Thailand also affected Toyota Motor Co. Toyota earlier announced a cut in overtime hours for workers at its North American auto plants. Those cuts run through the end of this week.
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