Honda Cars Philippines to cut local production by half

By Anna Barbara L. Lorenzo

Honda Cars Philippines (HCPI) said it is cutting its car production by half due to a shortage in automotive parts coming from Honda Motor Co., Ltd. in Japan.

"Relative to the volatile situation in Japan and consequent reduction of parts supply from Honda Motor Co., Ltd., HCPI is temporarily reducing 50 percent of its production volume from April 2011," Honda Cars Phiilppines said in a statement issued on April 4.

Honda produces the City and the Civic at its Santa Rosa plant in Laguna. HCPI head for sales and communications Voltaire Gonzales refused to disclose the company's monthly output under normal circumstances but data from the Chamber of Automotive Manufacturers in the Philippines showed that Honda sold a total of 11,789 units of the Civic and City in 2010.

"We believe that we can soon recover lost volume once parts supply resumes to normal level," Gonzales said in a separate interview.

Honda in Japan has already resumed production of automotive component parts following the stoppage since the double disaster hit the country on March 11. Honda said, however, that its current output is only approximately 50 percent of its original production.

This may also have affected production Thailand, where Honda Cars Philippines gets the Jazz, Accord and CR-V.

The car company assured the public, however, that Honda's teams in Asia and Oceania, and in other parts of the world, are "working diligently to overcome these temporary parts flow issues." Honda said it is seeking ways to minimize the impact of the parts issues on associates, dealers and customers.

Honda Cars Philippines, for its part, said it "will closely monitor the situation and strive to resume normal production operations the soonest."

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  • ashek268 Apr 04 2011 @ 04:05pm
    Car Prices will surely go up. Especially the Honda Jazz since it is a fast seller.
  • 6thgear-nitro Apr 04 2011 @ 05:01pm
    I remember them saying that "Production and availability of units will not be affected by the tragic events in Japan..." LIARS!!!
  • gvm0116 Apr 04 2011 @ 05:42pm
    @ashek268 - You could be right, well, as far as Japanese cars are concerned. But if the Koreans (not to mention the Chinese) see this as an opportunity for them to introduce good cars with competitive pricing scheme, then that might not happen as well.
  • gg Apr 04 2011 @ 05:45pm
    goodbye japan.. hello china!
  • gg Apr 04 2011 @ 05:45pm
    (Your thoughts on the article...)
  • jesslink Apr 04 2011 @ 07:06pm
    so it will ba a grand time for HYUNDAI and KIA...
    • barry Apr 05 2011 @ 04:41pm
      i guess but we have to observe the figures. for KIA, i don't think so...
  • tgstig Apr 04 2011 @ 08:09pm
    hyundai - not enough supply (laging pila kahit starex!)
    kia - if you can afford it
  • warak1422 Apr 04 2011 @ 08:42pm
    Why focus on Japanese and Korean Cars including the substandard Chinese???
    German and American Cars are affordable...
  • Rem Apr 04 2011 @ 10:21pm
    @warak1422, I believe German cars are more expensive than the Koreans. Some middle class Filipinos can't afford European cars like Mercedes Benz, BMW, Mini, VW, Volvo, etc. Their parts are somewhat rare and expensive too since some of them had to be ordered from EU. Yan ang dahilan sakin ni papa kaya ayaw niya bumili ng imported New Beetles. Some sell it below 500K, which is still expensive.
  • AM3 Apr 05 2011 @ 05:50pm
    @6thgear-nitro,
    Oh right, they did mention that... I guess they forgot that some components/parts of local/ASEAN Hondas come from Japan.
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