Company donating B112m to relief effort

Honda has reiterated that it will not relocate its production base in Thailand elsewhere despite heavy losses from flooding that has forced the Japanese carmaker to suspend production

The production halt comes six months after another setback in which Honda had to close after parts supplies were disrupted following the earthquake and tsunami in Japan in March.

Japan's Honda Motor and affiliated companies in Thailand are donating 30 million and 280 million yen respectively, or a total of 112 million baht, to support relief and recovery efforts from the flood that has submerged five major industrial parks in Ayutthaya and Pathum Thani and is now threatening Bangkok.

Honda's Thai units have also donated through the Thai government 200 Honda 160 engines and kits for small boats.

"Honda has been doing business in Thailand for 47 years, and we have long appreciated and valued the support and hard work of the Thai people," said Hiroshi Kobayashi, the CEO of Bangkok-based Asian Honda Motor Co.

"We are also very grateful for the tremendous support the Thai people provided to Japan following the major earthquake that struck the eastern part of Japan in March. We would like to provide support and our wishes for the earliest possible relief and recovery in Thailand."Honda in the near term will also donate pumps, high-pressure water sprayers, generators and other supplies depending on the immediate needs in flood-hit areas.

Honda's facilities in Thailand manufacture vehicles, motorcycles and multi-purpose power products. All were hard hit by the floods, especially the Honda Automobile Thailand assembly plant, located in the Rojana Industrial Estate in Ayutthaya. It has suspended production since early this month.

The Ayutthaya plant currently produces the City, Jazz, Brio, Accord and CR-V models with a total capacity of 240,000 units per year. Before the shutdown, the plant was operating at an annual capacity of 170,000 units.

The company was still looking after all 6,000 Thai workers by paying them as normal, said Mr Kobayashi.

"Of course, the rehabilitation of the damaged plant will take time and Honda will ... make its utmost effort to resume operations as fast as possible," he said.

He stressed that Honda would certainly not shift its production base from Thailand to other countries.

Thai Honda Manufacturing Co, which makes motorcycles and multi-purpose engines, located at Lat Krabang in Bangkok, reopened recently after closing for a few days to check parts inventories after its suppliers in Ayutthaya were forced to shut plants.