Automotive industry hardest hit by floods
The floods forced 14.000 companies to stop production. The automotive industry is one of the hardest hit industries.
Japanese automakers Toyota, Honda and Nissan have been missing production of 6000 vehicles every day since the beginning of this month. That costs the three companies $500 million a month. Apple and Western Digital Corporation, the world's largest manufacturer of hard disk drives, are also at a loss. Apple will not receive any components, WDC expects it to take months for production to return to normal levels.
The government estimates that the damage amounts to 120 billion baht, but according to brokerage BGC Partners Inc, that estimate underestimates the disruption of supplies. "The damage could be far, far bigger," says manager Amir Anvarzadeh.
Ford, entering the Fiesta Thailand assembles, only shut down its production on Wednesday and is consulting with its suppliers about resuming on Tuesday. GM has not been affected by the water so far.
For Honda, the stakes are high. It has the largest production unit in Asia outside Japan in Thailand. The plant in Ayutthaya was shut down on October 5. Body parts and components for the engine, suspension and braking system are supplied by 40 nearby factories, which have also been affected.