It’s a more competitive industry so they have to make this rationalization and

distribution of their resources.

HCPI president Noriyuki Takakura said was part of the group’s “.”

confirmed that the closure of the Honda car production facility in PH was mainly triggered by the
global slowdown caused by the US-China trade war, followed by the current COVID-19 issue.
The market slowdown forced companies like Honda to rationalize their global operations,
optimizing the allocation of their resources.

The inability to generate sufficient business profits

This study aims to answer the following questions:

1. What is the effect of the decline of Honda’s productivity on its cost efficiency,
production and profits?
2. How does the plantation shutdown affect Honda’s suppliers, particularly the metals and
plastic industries?
3. How does the average hourly manufacturing salary in Asia and nearby countries impact
Honda’s decision to halt production?
4. Is excise tax the key factor behind Honda’s decision to stop production?
5. Is low production volume the main reason for the Honda’s closure?
6. What will be the immediate and longer- term economic impact of the closure?
7. What steps will need to be taken to minimize the impacts for the local area?
8. Is a low volume sale in the Philippines one factor for Honda’s closure?
9. Is the closure of the Honda's production operations for efficient allocation and
distribution of resources?