Floods Force Honda to Halt Production at Taiwanese Plant

Honda Motor Co. (NYSE:HMC) announced it will suspend operations in its Taiwanese production facility. The suspension is due to the lack of availability of parts, which have traditionally been supplied by Thailand, a country that has been crippled by flooding.

MarketWatch quoted a statement released by Honda on its website which read, “Since Honda’s production facility in the flooded part of Thailand is not operating, Honda Taiwan is affected by the discontinued supply of components. We have been adjusting our output in order to keep production going, but we are now forced to decide to halt our production here from Dec. 15.”

It is unknown when production at the facility will resume.  Honda said that the suspension will not affect repair and maintenance operations.  Honda Taiwan’s sales were down 40% in November according to Focus Taiwan News Channel. The company also said that along with the Taiwanese plant, production will also be suspended at its Malaysian plant.

Here’s how major car maker stocks are reacting to the news:

Honda Motor Co., Ltd. (NYSE:HMC): HMC shares recently traded at $31.59, up $0.11, or 0.35%. They have traded in a 52-week range of $27.52 to $44.56. Volume today was 85,523 shares versus a 3-month average volume of 696,167 shares. The company’s trailing P/E is 20.38, while trailing earnings are $1.55 per share.

Toyota Motor Corp. (NYSE:TM): TM shares recently traded at $67.96, up $1.74, or 2.63%. They have traded in a 52-week range of $60.37 to $93.90. Volume today was 176,503 shares versus a 3-month average volume of 540,752 shares. The company’s trailing P/E is 41.44, while trailing earnings are $1.64 per share.

Ford Motor Co. (NYSE:F): F shares recently traded at $11.32, up $0.42, or 3.85%. They have traded in a 52-week range of $9.05 to $18.97. Volume today was 13,739,055 shares versus a 3-month average volume of 62,897,100 shares. The company’s trailing P/E is 6.79, while trailing earnings are $1.67 per share.

General Motors Corporation (NYSE:GM): GM shares recently traded at $21.83, up $0.55, or 2.58%. They have traded in a 52-week range of $19.05 to $39.48. Volume today was 2,074,850 shares versus a 3-month average volume of 12,598,800 shares. The company’s trailing P/E is 4.77, while trailing earnings are $4.57 per share.

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