MANILA – Honda is shuttering its manufacturing operations in the Philippines in response to a global slowdown and 387 employees who will lose their jobs will be "generously compensated," Trade Secretary Ramon Lopez said Tuesday.
The Japanese carmaker cited higher production costs and lower volumes in the Philippines as among the reasons for its decision to shut its Santa Rosa City plant, Lopez told DZMM radio.
Other Honda plants in the UK, Mexico, Argentina and Turkey were also closed, he said. The Philippine facility in Laguna produces 8,000 units per year compared to 200,000 in Thailand.
“Sinasabi nila na global decision, ibig sabihin ang headquarters nila ang nag decide nito dahil sa overall pati buong mundo humina rin ang negosyo ng Honda," Lopez said.
(They're saying its a global decision, which means it was the headquarters that decided because overall, even Honda's global business declined)
"Ang nangyari, syempre pag naghihigpitan ng sinturon, isasara nila ang medyo mababa ang volume, competitive 'yung market at 'yung cost nila ay mataas din,” he added.
(What happens is that if they need to tighten belts, they will close the one with lower volume, with a more competitive market and where their cost is higher)
Despite the global car sales decline, Honda’s motorcycle business is expanding in the Philippines, Lopez said.