Ford in the same boat as others in Thailand 0

Production for Ford in Thailand has halted. The devastating floods in the country have had a severe effect on the automotive industry throughout the world.Ford has suffered from supply of parts following the floods. It is estimated that 30,000 vehicles set for production could be affected.

Toyota has also announced a halt of North American production as the floods have caused a shortage in parts. Operations throughout the worldwide automotive industry have clearly taken a hit.

Ford consequences

Lewis Booth, the Executive Vice President and Chief Financial Officer stated that company are doing their best to get everything back and running as soon as possible. He said “Although our vehicle assembly plant is not affected, a number of our suppliers are. We are working closely with our affected suppliers to return to production as quickly as possible.”

Ford is hoping that production in Thailand will resume in the middle of November. However this may not be possible with the country struggling to recover from the floods. It has been closed since the 11th of October.

Ford combined with Mazda in opening and running the factory. In total, the factory produces around 220,000 vehicles per year. That figure consists of 120,000 pickup trucks and 100,000 passenger cars.

News from yesterday’s article about Ford on our blog stated that the company were performing poorly throughout Asia. Today’s news is evidence of that.

Operations in America on the other hand are on the up. Ford recently reported that they made a profit for the 10th consecutive quarter. It was the company’s American success which made that possible. The euro zone economic crisis along with poorly timed business decisions in Asia have seen the company suffer.

Everyone in the same boat

Natural disasters such as the Thailand floods as well as the Japan earthquakes and the Tsunami have proved too harshly affect business globally for many other major car manufacturers.

Nissan seem to have had a lucky escape, with a statement from the company indicating that their factory was unaffected from the floods, meaning production can still proceed. This doesn’t necessarily mean that production will continue as normal.  Their showrooms across the country are said to be affected however, meaning a loss in business.

In order for business to resume as normal and prosper, everything needs to be put back in place for Ford in Thailand. It’s a lot easier said than done.