We just learned today the announcement from Honda. We were told that they had to optimize the allocation and distribution of their resources in the region, which led them to decide to close the assembly of Honda City and BR-V models in Sta Rosa Laguna.
In other words, they may be facing challenges in keeping the cost competitiveness of their local assembly operations. We are meeting them on Monday to consider other alternative options so as to minimize the impact of any final decision they will make.
The cost structure of their local car assembly, which has about 380 workers, is basically challenged and there’s no tariff protection, thus making imports of vehicles as a cheaper alternative. Vehicle imports have been growing, causing injury to local industry, from assembly to the local parts supply network in the country.
Thus we really have to study the need to impose safeguard duty and other measures to provide at least a level of support to the local assemblers.
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