Honda closes Philippines factory!
Honda’s Philippine unit said in a statement on February 22 that its production plant in the south of Manila, the Philippine capital, will be closed from next month due to difficulties in Honda’s global auto business.
Honda’s Philippine unit said in a statement on February 22 that its production plant in the south of Manila, the Philippine capital, will be closed from next month due to difficulties in Honda’s global auto business. But Honda’s dealers in the region will continue to sell vehicles and provide after-sales service to consumers. After a series of quality problems, the profitability of Honda, Japan’s third-largest car maker, has fallen by more than half in the past two years.
On February 13, Honda just released its third quarter (October 1, 2019 – December 31, 2019). In the third quarter, Honda’s operating revenue was 3747.5 billion yen (about 238.5 billion yuan), a year-on-year decrease of 5.7%; operating profit was 166.6 billion yen (about 10.6 billion yuan), down 2.1%; net profit was 116.4 billion yen (about 7.4 billion yuan), a year-on-year decrease of 30.8%. In 2019, Honda’s global sales volume fell by 3.5% year-on-year, among which the sales volume in China reached a record high, and the annual sales volume in China increased by 12.22% year-on-year.
This shows that in addition to the Chinese market, Honda’s sales and profitability are declining. Honda said: “in order to meet the demand of Philippine consumers for products with reasonable price and excellent quality, Honda considers the efficient allocation and allocation of resources. Future production will focus on other production centers in Asia and Oceania. ”
Honda’s manufacturing plant in the Philippines, with 650 employees, began operations in 1992. The plant produces models including the Honda br-v and city to meet the needs of the local market. But compared with other countries in Southeast Asia, especially Thailand, the Philippines’ car production is negligible. A government tax incentive program launched in 2015 has yet to significantly increase its domestic car production.
In January, Honda and Toyota recalled millions of cars for safety reasons. Honda recalled 2.7 million vehicles, 2.4 million of which came from the U.S. market. Toyota recalled 3.4 million vehicles, 2.9 million of which came from the U.S. market. In February 2019, Honda also announced that it would close its only plant in the UK with 3500 employees by 2021. Honda said production would be transferred to Japan, North America and China.
2020-12-17