Vehicle production by Japanese automakers in Thailand is continuing amid growing concern about a possible disruption in parts supply. The fears come in the wake of last week's devastating 9.0 magnitude earthquake and subsequent tsunami in Japan.

Toyota

The assembly lines at the three Toyota Motor Thailand (TMT) factories remain fully operational, though doubts about parts supply remain. TMT has one plant in Samut Prakan and two in Chachoengsao.

A senior executive at the Thai unit said the parent company had suspended manufacturing at all of its plants in Japan until March 16th due to safety concerns and parts procurement difficulties.

Nissan

An executive at Nissan Motor Thailand confirmed all of the parent's factories in Japan were suspended immediately after the natural disaster. Facilities at a distance from the worst-hit areas in the northeast have since reopened, while those directly affected remain closed.

Honda

Executives of Honda Automobile (Thailand), the kingdom's second-largest maker of passenger cars, and Thai Honda Manufacturing, a maker of two-wheelers and power products, met on March 14th to assess the situation.

A Thai Honda Manufacturing executive said the meeting worked to determine what could be done regarding parts supplies from Japan and vehicle exports to that country.

Honda Motor will halt production in Japan at one factory from today and at five others from tomorrow. The suspensions will last until March 20th. Two of the suspensions involve automobile production and the rest two-wheelers and power products. Output from all six factories goes to the domestic market.

The executive did not specify where the six factories are located but said the suspensions came after Honda was able to make contact with only 44 of its 113 parts suppliers. "Since so many of Honda's suppliers cannot be contacted, it's best to halt production," said the executive.

Localisation

The suspensions will have no affect on Honda's Thailand operations, as only a very small volume of parts is sourced from Japan, nor are fully built products imported from there. Honda's production in Thailand has a localisation rate (use of local content) of almost 100%. "We're moving quickly to learn which parts will be in short supply so we can solve the problem in a timely manner," said the executive.

Automobile production at Honda's Ayutthaya factory is continuing as normal in the meantime.

TMT, Thailand's largest automobile company, on March 14th suspended overtime production because of uncertainty about parts supply from Japan and production by Japanese suppliers in Thailand. The suspension is expected to last one week, said the executive.

Toyota has a 94% localisation rate for pickup truck production and more than 60% for passenger cars, depending on the model.

An executive at Nissan's Thai unit said it is assessing the situation to determine the impact on operations there. Production at Nissan's facility on Bang Na-Trat Road remains normal for now. "We think our operations will not be affected by parts supply problems, as we have a global sourcing policy that allows us to procure parts anywhere in the world to ensure our production is not disrupted," said the executive.

The executive did not specify the localisation rates for Nissan pickup trucks and passenger cars. The company also exports its March eco-car to Japan, but the executive said there is no information about how that will be affected.