Thailand's flood sends no immediate impacts on Japanese automakers: S&P Skip to main content

Thailand's flood sends no immediate impacts on Japanese automakers: S&P

Thailand's flood sends no immediate impacts on Japanese automakers: S&P

There is no immediate impact on ratings on Japanese automakers and suppliers after Thailand's floods disrupted their supply chains, said Standard & Poor's Ratings Services.


The floods have forced companies including Toyota Motor Corp, Honda Motor Co Ltd, Nissan Motor Co Ltd, and Mitsubishi Motors Corpto temporarily suspend operations at their plants in Thailand. The country is the largest manufacturing base in Southeast Asia for the Japanese automobile industry. In some cases, the supply chain disruptions are also affecting vehicle production outside Thailand. Toyota just announced that the production capacity in Japan would be cut by 10 per cent due to shortages of components. Coupled with a cut in overtime production for at least 5 days, this will cut the output by 1,200 cars or a total of 6,000 unit.

S&P said in a statement released today that Thailand’s severe floods could slow recovery in the profitability of Japanese automakers and suppliers, after the Great East Japan Earthquake in March caused production cuts in the first half of the current fiscal year ending March 2012.

"However, we currently do not expect the impact of the floods to be as severe and prolonged as the production cuts that we saw after the earthquake. This is because Thai-made parts and vehicles are generally less difficult to replace than those made in other regions. Therefore, we do not expect the floods to cause protracted pressure on Japanese automakers’ profitability and to have a long-term impact on their market positions. Nevertheless, if the floods eventually result in severe and extended production cuts that lead us to believe that they will likely impair the automakers’ profitability and market positions in a serious manner over the long run, we may consider negative rating actions."

Comments

Popular posts from this blog

Sri Bhaddanta Chandramani Mahathera

The Life Story of A Distinguished And Outstanding Bhikkhu The Most Venerable Saradawpharagree Sri Bhaddanta Chandramani Mahathera The Buddhist missionary Saradaw Ashin U Chandramani was endowed with great gifts and led a famous and long life. He was a very well known, distinguished and outstanding Bhikkhu Mahathera. While living in the Kushinagar Monastery, a place close to where the Lord Buddha had passed away to Nirvana, the Government of India had offered, and he had accepted, the highest, most honourable and respected title "Guru Guru MahaGuru". He became the first ever President of all Buddhists in India.A World Buddhist Conference took place in Kathmandu during the reign of King Mahindra of Nepal. The Conference was very well attended by over one hundred thousand Buddhists from various parts of the world and it was opened by King Mahindra himself. As requested by the King, Saradawpharagree blessed all the participants with the power of Triple Gems...

Thai penis whitening trend raises eyebrows

Image copyright LELUXHOSPITAL Image caption Authorities warn the procedure could be quite painful A supposed trend of penis whitening has captivated Thailand in recent days and left it asking if the country's beauty industry is taking things too far. Skin whitening is nothing new in many Asian countries, where darker skin is often associated with outdoor labour, therefore, being poorer. But even so, when a clip of a clinic's latest intriguing procedure was posted online, it quickly went viral. Thailand's health ministry has since issued a warning over the procedure. The BBC Thai service spoke to one patient who had undergone the treatment, who told them: "I wanted to feel more confident in my swimming briefs". The 30-year-old said his first session of several was two months ago, and he had since seen a definite change in the shade. 'What for?' The original Facebook post from the clinic offering the treatment, which uses lasers to break do...

Three Dead, Seven Injured by Artillery Shells in Two Incidents in Myanmar’s Mrauk-U

By MIN AUNG KHINE 2 December 2019 Sittwe, Rakhine State –Three Mrauk-U township residents died and four others were injured when an artillery shell struck their community in the Ale Zay quarter of Mrauk-U town on Monday afternoon after 4 p.m. A month-old girl, a 4-year-old boy and a 30-year-old woman died, according to Dr. Khin Maung Yin, the head of Mrauk-U hospital. He said, “A man and three other women were injured. One of the women sustained severe injures to her left leg and her right knee was dislocated. The injured will be operated on.” Details of what occurred were not yet known. A few hours earlier, three civilians were injured when an artillery shell fell on the village of Na Leik in Mrauk-U Township, Rakhine State, western Myanmar, on Monday at around 1 p.m., according to Yan Aung Pyin village-tract administrator U Sein Hla Aung. Two females, aged 13 and 27, and an 18-year-old male were injured in the incident, he said. Three people were hit by shrapnel and we have...