Thailand Fears

Honda placed hope in its new sub-low-cost Brio car ... but floods have given this story a dark ending

Honda car dealers across Thailand are bracing themselves for a considerable drop in business following production shutdowns in the country. The plant in Ayutthaya remains submerged and is expected to be submerged for the rest of 2011 and half of 2012 at least. There is no clear date to resume operations. An industry source says that Honda's plant will not be operational until next May if the floods do not recede considering the fact that Honda needs time to assess the plant damage and work on replacements/repairs if needed. Honda's parts suppliers across Thailand have also been shut down and/or submerged by the floods, causing Honda's overseas production plants to cut production. 

Honda dealerships could be without cars for up to 5 months in Thailand. Honda wants the Thai government to wave foreign-built vehicle import duties to help its dealers but rival carmakers argue that no one company should be allowed these special privileges. This move would be unlikely as well because the government would lose millions of dollars in duties. 

Honda's Accord, CR-V, City, Jazz and Brio are made at the Thailand plant.