PH motorcycle firms suspend operations amid quarantine

MANILA: The. motorcycle sector is among the many affected by the  Covid-19 pandemic. This is in terms of export and import and local production. Based on statements from industry sources, motorcycle companies are preparing for setbacks in the delivery of completely knocked-down units (CKD), semi-knocked down units (SKD), and completely built-up units (CBUs). The delays are expected adversely affect the local supply chain.

Philippine motorcycle companies, namely Honda and Yamaha, decided to temporarily shut down operations following the enhanced community quarantine (ECQ).

The country’s largest motorcycle company, Honda Philippines (HPI), suspended office operations in Luzon since yesterday, March 17.

In an announcement, HPI stated that the temporary work suspension is until March 20, 2020. In line with the ECQ,  the suspension will be subject to regular monitoring of the crisis. While waiting for the crisis to recede, HPI allows a few of its workers in Luzon to take advantage of a work-from-home system or unique leave scheme.

Meanwhile, Yamaha Motor Philippines (YMPH) temporarily suspended its activities and operations beginning Monday. The management will still decide regarding the length of the suspension.

HPI manages a 20-hectare motorcycle manufacturing plant in Tanauan, Batangas. On the other hand, YMPH runs its facility in the nearby municipality of Malvar. Such facilities cover operations like business management, production, and administrative support of personnel for both companies. Nevertheless, their offices in Visayas and Mindanao shall continue its operations.

Meanwhile, other motorcycle companies, namely, KTM, Moto Morini, Gasgas, and Husqvarna, also suspended operations temporarily since the virus outbreak hit Europe.

The parent company of Gasgas, Husqvarna, and KTM, Pierer Mobility, announced a two-week shutdown of its Austrian manufacturing plant from March 30 to April 10.

According to Pierer Mobility, the potential impending disruption of the northern Italian supply chain triggered this intervention. There are several suppliers in the area that the COVID-19 has dramatically affected.

Furthermore, KTM ensured that the prudent suspension of its manufacturing operations would not harm the global supply chain of spare parts.

Pierer Mobility also added that through this intervention, KTM prevents potential unregulated business interruptions and foresees part of the company break to optimize the supply chain over the long term.

The Gasgas factory is situated in Girona, Spain. In its most recent report, the World Health Organization (WHO) recorded 2,140 confirmed cases in Spain and 302 cases in Austria.

The Ayala-owned Adventure Cycle Philippines (ACP) is the local distributor and manufacturer of KTM bikes. It generates selected models of KTM while continuously importing a few units from the main plant in Mattighofen, Austria. Models include big displacement ones such as the 1290 Super Duke GT and the 1290 Super Adventure.

ACP announced earlier that it would begin the production of the 790 Adventure dual-purpose bike and a few of the selected models of Husqvarna in its Laguna facility within the year.

According to Moto Morini representatives, they are quite worried but also confident that they are going to overcome the crisis and recover. Italy can do this since it is a country that is functionally strong.

The management of the company cited the health of its workforce as the primary concern in making this decision. However, they did not mention when the company would resume operations.

Moto Morini motorbikes are accessible in the country through BikerBox, a multi-brand motorcycle distributor, located in Sucat, Paranaque.