The city government of Santa Rosa, which hosts major car manufacturing companies, is about to lose 80 million pesos in annual business taxes, with the closure of Honda Cars Philippines.
Santa Rosa, which claims to be the “Motor City of the Philippines,” also hosts the car assembly plants of Toyota, Mitsubishi, Nissan, and Hyundai.
While saying the economic losses were not small, Mayor Arlene Arcillas hoped Honda’s shutdown would not impact heavily on the city’s local economy.
The city government only learned of Honda’s closure on Saturday, although the company’s management tried to reach the local government on Friday.
Honda said the closure was due to their “optimization efforts in the production operations in Asia and Oceania region.” Last year, the Laguna plant produced only 8,000 units although it has the capacity to make 15,000 units a year.