16:04 | 23/02/2020 Car & Motor
Honda Cars Philippines, Inc. (HCPI), which assembles passenger cars BR-V and City, announced Saturday that it will stop production operations in its plant in Sta. Rosa, Laguna effective March, 2020.
|The logo of Honda Motor Co. is seen on a Honda vehicle at the Japanese automaker’s headquarters in Tokyo. The Japanese automaker reported a 71 percent decline in fiscal third-quarter profit as air-bag recalls and flat vehicle sales eroded the benefits of cost cuts - AP Photo|
In a statement, HCPI President Noriyuki Takakura said that in order to meet customer needs for reasonably priced and good quality products it considered efficient allocation and distribution of resources.
As such, after consideration of optimization efforts in the production operations in Asia and Oceania, Honda decided to close the manufacturing operations of Honda Philippines.
But the company said it will continue its operation in automobile sales and after-sales service in the Philippines through the utilization of Honda’s Asia and Oceania regional network.
Honda will continue providing highly attractive products to its customers in the Philippines, it added.
HCPI spokesperson Louie Soriano said a total of 387 factory workers, out of its total 650 employees, will be affected by the plant’s closure. The affected employees will receive separation packages more than what the law provides to assist them during this difficult transition period.
HCPI is the country’s fourth largest car company. In January this year, HCPI sold 1,769 units or 9 percent lower than the 1,943 units in the same month last year. It sells 12 car models, including the two locally assembled BR-V and City.
It entered in the Board of Investments Motor Vehicle Development Program via the People’s Car Program in 1990. Two years after in 1992, it started production of its People’s Car model City.
It has a capital investment of P1.9 billion.