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Unrest spurs Honda's Thai unit to cut output, delay new plant
May 22, 2014 / 9:47 AM / 4 years ago

Unrest spurs Honda's Thai unit to cut output, delay new plant

BANGKOK, May 22 (Reuters) - The Thai unit of Honda Motor Co said on Thursday it has cut production at its Ayutthaya plant to 60 percent to reflect weak domestic demand and voiced concerns sales may fall short of its target this year after months of prolonged political unrest.

The Japanese carmaker has decided to delay by six months to a year the startup of a new $530 million plant from its previously planned April 2015 date, said Pitak Pruittisarikorn, executive vice president at Honda Automobile (Thailand) Co.

“We have been worried about the unfavourable conditions since earlier this year, both economic and the political situation,” he told reporters on the sidelines of a marketing event.

The Ayutthaya plant has an annual capacity of 300,000 vehicles, while the new plant in Prachinburi is under construction and will have an annual capacity of 120,000 vehicles, he said. (Reporting by Pisit Changplayngam; Writing by Khettiya Jittapong; Editing by Matt Driskill)

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