Honda plant in Laguna to cease operations next month

Honda Cars Philippines Inc. (HCPI)’s production facility in Laguna will be ceasing operations next month.

In a statement, HCPI said that it decided to close its manufacturing operations in Laguna after considering its optimization efforts.

“To meet Honda’s customer needs in the Philippines for reasonably priced and good quality products, Honda considered efficient allocation and distribution of resources. As such, after consideration of optimization efforts in the production operations in Asia and Oceania region, Honda decided to close the manufacturing operations of HCPI,” the firm said.

However, the HCPI said that it will continue its automobile sales and after-sales service operation in the country through the utilization of the company’s Asia and Oceania regional network.

“Honda will continue providing highly attractive products to its customers in the Philippines and continue contributing to the local society, which has been an ongoing effort for the last 50 years since Honda was established in the Philippines,” HCPI said.

The company’s plant in Laguna produces BR-V and City units. 

HCPI sold 20,338 units last year, down 12.7 from 23,294 in 2018. Last month, the company’s sales reached 1,769 units, nine percent lower than the 1,963 units in the same month last year.

The STAR reported that HCPI’s announcement of its plant closure comes at a time the government has started its preliminary probe on a petition filed by workers’ group Philippine Metalworkers’ Alliance seeking to impose a safeguard measure or duty on vehicles amid rising imports. – With Louella Desiderio

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