• Bloomberg


Japanese automakers are losing 6,000 units of production a day because of the floods in Thailand, the Japan Automobile Manufacturers Association said Thursday.

Nine carmakers were affected by the floods, the group said. Japanese automakers produced 1.6 million vehicles in Thailand last year, accounting for more than 90 percent of total production in the country, the group said.

“It’s difficult to say when production in Thailand will return to normal,” Toshiyuki Shiga, chairman of JAMA, said in Tokyo. “Japanese automakers are split between temporarily importing parts from other countries and waiting for the waters to subside.”

The automakers are facing another round of output disruptions from Thailand’s worst floods in half a century just as they are ramping up production to make up for lost sales after the March disasters devastated Tohoku.

“The numerous hardships have been tough on Japan’s automakers,” Shiga said. “I hope the carmakers will learn from the challenges and become strong against any kind of risks.” He didn’t provide an estimate on how much the floods may cost.

Carmakers are likely to shift production in the short term to neighboring countries, such as Indonesia and Malaysia, to compensate for the loss of production in Thailand, according to a report by research firm Frost & Sullivan.

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