Things are not looking too good for some auto dealerships following the COVID-19 pandemic. Just recently, the Yuchengco Group of Companies' House of Investments (HI), which handles the company's auto division, announced that they will be shutting down five dealerships in Metro Manila.
In a company announcement made through the Philippine Stock Exchange (PSE), effective June 2, 2020, HI will officially be closing down four Honda dealerships: Honda Cars Marikina, Honda Cars Marcos Highway, Honda Cars Kalookan, and Honda Cars Fairview. One Isuzu dealership is shutting down as well: Isuzu Greenhills.
With the closure of the said dealerships, HI will implement a redundancy program for its affected workers.
HI said that ceasing operations of these dealerships is part of the company's to ensure “overall greater efficiency” in its automotive business. Moreover, the decision to close the five dealerships was made after a thorough assessment of its business organization, needed manpower, machines, and processes.
This does come as a significant blow to YGC's automotive portfolio which includes Honda Cars Quezon City, Honda Cars Kalookan, and Honda Cars Manila.
Under the YGC's Car Division, Honda Cars Quezon City (HCQC) was first incorporated on March 18, 1991, and formally began operations on July 22 of the same year. September 27, 1994, also saw the opening of Honda Cars Kalookan.
The company quickly expanded and a new branch was established in Otis, Paco, Manila in March 1997 which became known as Honda Cars Manila (HCMA). HCMA was the only Honda dealership in the country in 1999 that was able to achieve its prescribed sales target.
Then in 2001, the company established two new dealerships; Honda Cars Marikina (HCMK) and Honda Cars Fairview (HCFV) which were both inaugurated in June 2001. The newest Honda dealership that opened under HI was Honda Cars Marcos Highway which opened in January 2014.
With no official word yet from YGC or HI regarding their next move, it looks like we'll have to wait and see.