Toyota, Mitsubishi keep targets despite Thai floods

THE Philippine units of Toyota, Mitsubishi Motors, and Nissan said they would keep their targets amid planned adjustments stemming from supply disruptions caused by massive flooding in Thailand.

“TMP will adjust production operations in view of the temporary limitations of production parts supply coming from Thailand,” Rommel Gutierrez, Toyota Motor Philippines Corp. vice president, said in a text message.

“We still maintain [our] production target for the year as we continue to monitor supply situation in that country,” Gutierrez said.

TMPC became the second automotive firm to scale back its production after Honda Cars Philippines Inc. announced similar adjustments.

On Friday, Toyota announced plans to cut output across Southeast Asia, including the Philippines, because of difficulties exporting some car parts from flood-hit Thailand.

Operations in the Philippines will be reduced to three days beginning this week, according to a Wall Street Journal report.

Toyota also extended the production halt at its three plants in Thailand located in Samrong, Gateway and Pan Pho through October 28 because of the delay in the procurement of some parts. The company shut down the three plants on October 10.

For its part, Mitsubishi Motors Philippines Corp. said the floods have not affected Thailand operations, adding that the group has stocks on hand that would be good enough for the rest of the year.

“We’re still assessing the situation since Mitsubishi Motors Thailand’s suppliers, which also supplies parts to other brands, were affected,” Mitsubishi said in a statement.

Nissan Motor Philippines Inc. said it is operating with sufficient supply of vehicles and after-service parts stock on the ground.

“NMPI’s supply is only slightly affected by the recent events, but not as bad as the other manufacturers. Our suppliers who got affected are only those supplying Grand Livina—the rest of our models are not affected,” NMPI said in a statement.

HCPI earlier said it would assess the situation in Thailand and its possible impact on its local operation.

The floods had prompted Honda to suspend automobile production at its Ayutthaya plant as well as motorcycle production at its Bangkok plant beginning October 4. The flooding in Thailand prompted Japanese automakers to stop manufacturing, reducing production by a total of 6,000 units a day, according to the Japan Automobile Manufacturers Association.

Of the 168,000 units sold in the Philippines last year, 49,000 units, or 29 percent came from Thailand, according to an industry source.

“If that is so, that will have an impact for sales of companies that are importing completely built units from Thailand,” the source said.

The fresh supply woes from Thailand put in peril the four to five percent growth projection of the Chamber of Automotive Manufacturers of the Philippines Inc. The projection did not factor in the adverse impact of the crisis in Japan, the leading source of cars and auto parts for the Philippine market.

Local vehicle sales in the January to September period remained in negative territory for the fourth straight month, dropping 3.5 percent to 105,663 vehicles from the 109,517 sold in the same period last year. –Krista Angela M. Montealegre Reporter, Manila Times