Japanese automakers have ended 2011 worse for wear as the March 11 Japan earthquake as well as the rising yen exchange rate significantly damaged business. Unfortunately, Honda starts 2012 with new challenges.
October floods in Thailand have caused major losses to Honda’s plant in the central province of Ayutthaya. To reassure customers that no vehicles damaged in Thailand flooding will be sold, Honda has begun a scrapping process, destroying more than 1,000 cars over a month.
Executive VP of Honda Automobile Thailand Pitak Pruittisarikorn said, “While we were able to relocate many new cars that were awaiting shipment to a safe area, 1,055 vehicles that remained in the plant were finally damaged by the flood… We will not sell any of the damaged cars to customers, or sell or reuse any of the parts.”
Most vehicles destroyed are the Honda city sedan, and the Brio and Jazz hatchbacks. Unfortunately, production at the factory has yet to resume.
Many global supply chains were disrupted due to flooding and while water levels have receded, many areas require a major clean-up operation.
GALLERY: Honda Brio