As if last March’s tsunami in Japan was not enough, Honda was also hit extremely hard by massive flooding in Thailand late last year, which will force the automaker to take substantial losses and rebuild its facility.
According to Japan’s Nikkei business daily, Honda is estimating the total costs associated with restoring the 240,000 cars-a-year plant to hit at least $650 million.
The plant in question, located in the Ayutthaya Province in central Thailand, was completely submerged in water at least 10 feet deep, which ruined over 1,000 vehicles ready for transport and annihilating the entire production facility.
Honda does expect to get some reimbursement from insurers, but the process is costly and cumbersome regardless.
Due to the extent of the damage, the repairs are expected to be not far off from starting from scratch, so a total restoration could take well over a year.
References
1.’Honda may lose…’ view
