The crash of five car dealership outlets amidst coronavirus

By Andrea Nicole

Posted on Jun 05, 2020

Honda Crash

The coronavirus outbreak is a highly impactful health crisis that affected several countries around the world. Aside from human impact, COVID-19 has also caused a commercial crisis, devastating our global economy.

To make matters worse, we all know that this pandemic is far from over.

In the Philippines, drastic measures were implemented to control the spread of coronavirus. When the country was placed on Enhanced Community Quarantine, numerous industries were forced to stop their operations. With curfews and restrictions imposed, small and micro-enterprises and services crippled. But even big businesses were not immune to suffer a loss.

Car dealership is one of the severely affected industries.

The Yuchengo-led House of Investments (HI) has decided to shut down five car dealership outlets in Metro Manila starting Tuesday, June 2. Four Honda and one Isuzu outlets will be closed as the car industry faces a crash in sales due to the pandemic.

Here are the following outlets that will shut down by June 2, 2020:

Honda Fairview
Honda Marikina
Honda Marcos Highway
Honda Kalookan
Isuzu Greenhills

These five outlets comprise 45% of HI’s car dealership network.

As disclosed by the Yuchengco-led company to the Philippine Stock Exchange, they have decided to stop their operations in the following outlets to "ensure overall greater efficiency". Due to the pandemic, they had to assess the status of their car business organization, machines, processes, and manpower.

The closing of these car dealership outlets created a ripple effect - job cuts affecting almost 400 employees. The exact number of laid off workers and separation agreement were not disclosed.

Earlier this year, Honda Cars Philippines Inc. also closed their production plant in Santa Rosa, Laguna.

The Association of Vehicle Importers and Distributors (AVID) determined a 30-40% decline in total automotive sales, which is a total decrease of 80,000 to 165,000 units. Indeed, the industry was severely affected by the pandemic and recovery remains a big challenge.

For those who are looking for car dealership stores, Honda still has outlets in Quezon Avenue, Greenhills, Manila, and a service center in Tandang Sora. Isuzu also has open branches in Commonwealth, Manila, and Leyte.

Now that provinces are in Modified Enhanced Community Quarantine (MECQ) and Manila is now under General Community Quarantine (GCQ), the government has released a list of businesses, establishments, and services that are allowed to reopen. However, stricter guidelines are being implemented to ensure safety.

In Metro Manila, car dealership outlets may open but only 50% of the employees will report to work to minimize risks. So if you’re planning to pay a visit to these outlets, you must keep in mind that their services might take longer than usual. Most car dealerships advised their customers to schedule an appointment in advance. In accordance with GCQ guidelines, employees at car dealership outlets must wear personal protective equipment, use thermal scanners, and observe social distancing within their facility.

Honda Covid Crash