Daily Management Review

Honda Cars Philippine Inc To Stop Production


As Honda fails to increase “global automobile operations” and witnesses a drop in profit levels, the company has decided to terminate manufacturing process in its Philippine based unit.

Last week, Honda Motor Co Ltd’s Philippine based unit informed that in the coming month it will close down the said facility for the company is struggling to “shore up global automobile operations”.
Honda happens to be the “third-largest” auto manufacturer in Japan which has seen its profit level drop down below 50% in the last two years following a “series of quality-related issues”.
The Honda Cars Philippines Inc issued a statement to inform that the manufacturing plant situated in the “south of the capital Manila” will stop its operations in the coming month which is just round the corner. However, it will carry on with its “automobile sales and after-sales services” through its regional network.
According to Honda’s statement:
“To meet Honda’s customer needs in the Philippines for reasonably priced and good quality products, Honda considered efficient allocation and distribution of resources”.
While, it also informed that manufacturing work will be carried out in “other hubs in Asia and Oceania”. The said manufacturing facility employs six hundred and fifty “employees and associates” and was inaugurated in 1992. The factory manufactures “BR-V and City passenger cars catering to local demand”.
Among the local partners of Honda Philippines are “Rizal Commercial Banking Corp” as well as “a unit of conglomerate Ayala Corp”. According to Reuters report:
“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”.