The flood in Thailand brought many frustrations, it not only disrupted the natural habitat, but it also affected many industries. The second quarter of Toyota, which has its factories set in Thailand, dropped its profits by $1.03 billion (18.5% of its total), due to the lack of supply caused by the flood.
Toyota even withdrawn its profit and vehicle sales forecast due to the uncertainty over the flood impact. According to the chief executive of Fukoku Capital Management in Tokyo, the flood is going to “sustain for quite a long time, recovery start from maybe the next year” and will significantly affect the sales.
And until now, the Toyota spokeswoman said that they have lost 150,000 outputs just from the October flood. And they will have to reduce outputs to other countries such as the US and Canada.
These cutbacks have come at a time when Toyota was starting to ramp up global production to make up for lost output after the earthquake and Tsunami in Japan in March. These unfortunate natural disasters in the Asia regions has caused severe economic problems, it would especially take industries in Japan to recover.
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