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Honda's Philippine unit to close auto production plant

Published 02/23/2020, 12:49 AM
Updated 02/23/2020, 12:56 AM
Honda's Philippine unit to close auto production plant

Feb 22 (Reuters) - The Philippine unit of Honda Motor Co Ltd
7267.T said on Saturday its production facility will shut down
next month, as the Japanese automaker struggles to shore up
global automobile operations.
Japan's third-largest automaker has seen its profitability
decline by more than half in the past two years, led by a series
of quality-related issues.
In a statement, Honda Cars Philippines Inc said its
production plant south of the capital Manila will cease
operations next month. But automobile sales and after-sales
services will continue through Honda's regional network. (https:// "To meet Honda's customer needs in the Philippines for
reasonably priced and good quality products, Honda considered
efficient allocation and distribution of resources," the company
said.
Production will focus on other hubs in Asia and Oceania, it
added.
Honda Philippines' manufacturing plant, which has 650
employees and associates, started operations in 1992. It makes
BR-V and City passenger cars catering to local demand.
Honda Philippines counts Rizal Commercial Banking Corp
RCB.PS and a unit of conglomerate Ayala Corp AC.PS as its
local partners.
The Philippines' automotive output is a minnow compared with
its Southeast Asian peers, notably Thailand. A government tax
incentive program launched in 2015 has failed to significantly
raise the country's local auto production.

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