Honda Motor Co.'s (HMC) Philippines car unit is expected to lay off as many as 400 workers after making a decision to stop production at its Philippines plant. But the Honda Cars Philippines layoffs are reportedly expected to have a larger ripple effect as 1,000 to 2,000 parts suppliers for the automaker could be out of work as well.

A spokesman for the Trade Union Congress of the Philippines told Kyodo News (via ABS CBN News) that “The bigger problem is the 1,000-2,000 'endo' (end-of-contract) and contractual workers who work in six Honda parts suppliers.”

According to Tanjusay said, these workers will have no back pay and no separation benefits. Tanjusay also told the news outlet that the organization is offering legal help and assistance to those that will be affected by the plant closure.

Honda announced that it will stop production at the Philippines plant in March as it looks for “efficient allocation and distribution of resources.” The plant produces the Honda City sedan and BR-V sport utility vehicles.

The Philippine Department of Trade and Industry is expected to meet with Honda executives to discuss alternatives and how to minimize the impact of the job cuts, ABS CBN News said.

Shares of Honda stock were down 3.44% as of 2:41 p.m. EST on Monday.

Visitors are silhouetted against a Logo of the Honda Motor at the company showroom in Tokyo
Visitors are silhouetted against a Honda logo at a company showroom in Tokyo last Oct. 31. REUTERS
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