Honda to spend $650 million to overhaul its flood-affected plant in Thailand
By Andrew, 17 Jan, 2012. 0 Comments
2012 Honda Fit Sport
Honda Motor Co. will spend more than 50 billion yen ($650 million) for the total overhaul of its flood-affected plant in Thailand, according to a report on the Nikkei business daily last Sunday. Japanese automakers were the most affected by the flooding in Thailand. Honda’s plant in the Ayutthaya Province in central Thailand that had an annual output of 240,000-cars-a-year was under water.
The Nikkei also said that Honda has begun to replace equipment and that it aimed to restart production this April. A Honda official said that the costs to refurbish the factory would be nearly the same as constructing a plant from scratch.
The Nikkei said that Honda could get payment from insurers, which continue to evaluate damage at the factory, as early as in the current financial year to March. This reduces Honda's financial burden to some extent, according further to The Nikkei.
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