Japanese automaker Honda announced on 24 February 2020 that its manufacturing facility in Laguna, Philippines, will cease operations by the end of March 2020. The closure is part of a broader strategy to streamline production across Asia and Oceania, with the company shifting output to locations such as the United States, Japan and China.
According to a company spokesperson, Louie Soriano, the decision to end manufacturing at Honda Cars Philippines Inc. (HCPI) follows a review of regional optimisation efforts. While vehicle assembly will stop, HCPI will continue to handle sales and after‑sales services in the Philippines, drawing on Honda’s wider Asia‑Oceania network. The plant’s shutdown will result in the loss of at least 387 jobs. Soriano said Honda intends to provide compensation that exceeds the statutory minimum, aiming to help displaced workers transition to new employment.
Nevertheless, the labour group Defend Jobs Philippines questioned whether the offered packages will be sufficient. Its spokesperson, Thadeus Ifurung, urged the government to conduct a thorough assessment of the closure’s impact on Filipino workers and to explore alternatives before allowing the plant to close.
The Department of Labor and Employment (DOLE) has already taken up the case. Officials are scheduled to meet with HCPI executives to discuss possible measures that could mitigate the effect on the workforce and on local suppliers linked to the plant. Honda’s plan mirrors earlier announcements to wind down its UK factory by 2021‑2022, reflecting a global reallocation of production capacity.
The Philippine closure has drawn mixed reactions. Some observers view it as an opportunity for the country to diversify its industrial base, while others warn of short‑term economic fallout for the affected families and ancillary businesses.
Internationally, the move has been noted by U.S. officials. U.S. Ambassador to the Philippines Sung Kim said the United States welcomes Honda’s shift toward greater manufacturing in America, aligning with broader efforts to support U.S. businesses and workers. He added that the U.S. government is cooperating with Philippine authorities to ensure a smooth transition for those impacted.
In the Philippines, government agencies are monitoring the situation closely to safeguard employment and limit any adverse ripple effects on the economy. While Honda has pledged generous severance, labour advocates continue to press for comprehensive support, including retraining and job placement assistance.
The plant’s closure marks a significant development for the automotive sector in the Philippines, underscoring the challenges of global supply‑chain realignment. As discussions between Honda, DOLE and other stakeholders progress, further updates are expected in the coming weeks.
