5 Honda, Isuzu outlets close as coronavirus hits car sales
MANILA, Philippines – House of Investments will be closing 5 of its car dealership outlets effective on Tuesday, June 2, as the car industry projects a dramatic drop in sales due to the coronavirus pandemic.
In a disclosure to the Philippine Stock Exchange on Monday, June 1, the Yuchengco-led company said it will be shutting down the following stores to "ensure overall greater efficiency":
- Honda Fairview
- Honda Marikina
- Honda Marcos Highway
- Honda Kalookan
- Isuzu Greenhills
"In an effort to streamline the car dealership business operations of the House of Investments, the company conducted a careful and thorough assessment of its car business organization, dealerships, and the needed manpower, machines, and processes," House of Investments said.
The company did not indicate the number of affected workers and their separation agreement.
According to the House of Investments website, it has other Honda outlets in Quezon Avenue, Manila, and Greenhills, as well as one service center in Tandang Sora. Remaining Isuzu dealerships are in Manila, Commonwealth, and Leyte.
Honda Cars Philippines Incorporated earlier announced the closure of its production plant in Laguna. (READ: [ANALYSIS] Why Nokia, Wells Fargo, and Honda are leaving the PH)
Fitch Solutions earlier noted that car sales could contract by 1% in 2020, as supply chain disruptions hit component suppliers like Thailand and Japan.
Fitch Solutions added that transport operators may also stop expanding the number of cars in their portfolio, leading to a drop in car sales.
"Transport operators will face significant losses in revenue due to a collapse in commuter demand, thus prompting them to hold off on their planned fleet renewals," the report said. – Rappler.com