Honda closes its plant in the Philippines

Honda closes its plant in the Philippines

February 24, 2020 0 By autotimesnews

The company, which has been operating since 1992, will cease operation as early as next month.

Japanese carmaker Honda officials have announced the closure of one of their plants. This is an enterprise located in the Philippines. This decision was made against the background of the general problems of the Japanese company – over the past two years, Honda’s revenue has almost halved. This trend is due to a number of problems, including those related to quality. The plant in the Philippines will stop operating in March, however, sales of cars and their warranty and maintenance will be carried out through a local dealer network.

According to the statement of the Japanese company, the closure of the plant does not mean leaving the regional market, but simply is a way to effectively distribute resources.

Recall that the company has been successfully operating for 28 years – today its staff is 650 people. Two passenger models go off the assembly line of the plant – BR-V and City. For Honda, the Philippine plant is not a key plant located outside of Japan. If you compare it with a company in Thailand, the volume of production in the Philippines is much lower.