Japanese carmakers Honda and Toyota have made changes to their North American production because of flooding in Thailand, where both manufacturers have prominent production factories.
Honda has suspended production for the U.S. since Oct. 4 due to parts supply disruptions resulting from flooding that has continued since Oct. 8 at one of its automobile subsidiaries, a Honda press release said. It is not certain when production will resume.
Additionally, Toyota suspended production on Oct. 29 at its manufacturing facilities in Indiana, Kentucky, and their engine manufacturing facility in West Virginia because of parts shortages from their Thailand plant, according to a Toyota press release.
Toyota has also adjusted their overtime production schedule, suspending assembly overtime for the week of Oct. 31 through Nov. 5 at the North American plants. However, it assured that car supply and dealerships would not falter because of high inventory in recent months, a Toyota press release said.
“I feel like there is always overstock in the car industry, in general,” said junior economics major Jordan Hagel. “In the short term, I think they will be fine, but the demand for their cars will meet their supply and they will soon run out unless they get the plants up again in Thailand.”
Sophomore finance major Kyle Convissar said that “this could make [Honda and Toyota cars] more expensive, for at least now. Their supply chain for inventory is disrupted right now, which can create a lot of internal problems.”