Wednesday, October 19, 2011

Impact Of Thailand Floods On Automotive Industry And Supply Chain - Frost & Sullivan Analyst Comment

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Analyst Comment by Vivek Vaidya, Vice President, APAC, Automotive & Transportation, and Vijay Rao, Research Manager, APAC, Automotive & Transportation

Thailand has been inundated with severe floods in its recent history, and the automotive sector which has an annual production capacity of about 2 million units in 2010, is one of the hardest hit industries. The recent inundation of floods in Thailand has not only had a major effect on local automotive production and supply chain disturbances but is also likely to have a short  term effect on the regional and global supply of automotive parts and vehicle exports.

Impact of the Flooding in Thailand - Current Situation: Halt of Automotive Production in Thailand Assembly Plants

Thailand is currently experiencing the worst flooding in the last five decades. 26 of the 90 provinces in Thailand have been affected by floods and automotive assembly plants and parts maker factories located mainly in and around Ayutthaya and Pathumthani provinces are suffering from it.
Japanese OEMs such as Toyota, Honda, Mitsubishi, Isuzu, Nissan and American OEMs such as GM and Auto Alliance (Ford and Mazda) have assembly locations in Thailand with a combined annual production capacity of approximately 1.7 million - 1.8 million units.