Yuchengco firm shuts down 5 Honda dealerships

Yuchengco-led House of Investments (HI) has shut down five of its 11 car dealership outlets in Metro Manila as part of measures to ensure “greater efficiency” in the automotive business, an industry that has taken a heavy beating from the coronavirus pandemic and the consequent lockdown measures.

In a disclosure to the Philippine Stock Exchange on Monday, HI announced that Honda Fairview, Honda Marikina, Honda Marcos Highway, Honda Kalookan and Isuzu Greenhills would fold up effective today (June 2).

In relation with the dealership streamlining, HI said it would implement a redundancy program on its workforce, resulting in the displacement of around 400 employees.

“These employees will receive separation benefits in accordance with law and support in the form of re-training, career counseling and a job placement program,” the company said.

The decision to close these dealerships was made following a “careful and thorough assessment of its car business organization, dealerships and the needed manpower, machines and processes,” the disclosure added.

“With this move, HI also future proofs the business and increases its technological capabilities, enabling some sales and customer service functions to be done digitally. —Doris Dumlao-Abadilla INQ