Honda closure ‘is devastating’ says Minister
Demand for certainty to protect manufacturing industry in Yorkshire
BUSINESS SECRETARY Greg Clark said the decision by Honda to close its Swindon factory was a “devastating decision”.
He said Honda had indicated it was a “commercial decision based on unprecedented changes in the global market”.
The announcement by Honda confirmed plans to shut its factory in 2021 with the loss of 3,500 jobs. The Japanese firm told workers it proposed to close the vehicle manufacturing plant at the end of the current model’s production life cycle.
The plant produces 150,000 cars a year.
Mr Clark said: “I will convene a task force in Swindon with local MPs, civic and business leaders as well as trade union representatives to ensure that the skills and expertise of the workforce is retained, and these highly valued employees move into new skilled employment.”
THOUSANDS OF job losses at Japanese car giant Honda’s plant in Swindon have sparked concern among Yorkshire’s political and business leaders over the future of UK manufacturing after Brexit.
The leading car firm yesterday confirmed plans to shut its plant in Wiltshire in 2021 in a devastating blow to Britain’s motor industry. The factory employs 3,500 workers, but at least as many work for companies across the country which supply Honda with parts and services.
Business Secretary Greg Clark, inset, said the decision was “devastating”, adding that it underlined the importance of striking a Brexit deal.
He said: “We will go on making sure that the argument that manufacturers put for a deal to be concluded swiftly is something that is heard loud and clear.
“Decisions like Honda’s this morning demonstrate starkly how much is at stake.”
Although Honda maintained that Brexit was not to blame for the decision, Yorkshire’s business leaders and MPs demanded more certainty for firms in order to protect jobs as the UK prepares to leave the EU at the end of March.
Richard Wright, the director of Sheffield Chamber, said global pressures on the car industry had been exacerbated by Brexit uncertainty, but he urged firms and politicians to embrace the new opportunities on offer.
“Every sector will have to deal with changes brought about by Brexit and world trade and customs changes,” he said. “As with all these things there are threats and opportunities. The opportunity is for the UK to become a world leader in alternatively powered cars and trucks.
“We have as much chance of that as anybody else if we get the technology and cost base right.”
Keith Ridgway, the founder and executive dean of the Advanced Manufacturing Research Centre, added: “The closure will have a very wide ranging impact and it will not just be confined to the UK. In South Yorkshire, manufacturing companies appear to remain buoyant, but they are not complacent.
“To remain competitive, they need to invest in innovation, but the uncertainty over Brexit makes this extremely difficult. “Our role, with the support of government, is to de-risk these investment decisions to help keep UK industry globally competitive.”
The region’s MPs called on Ministers to provide more certainty for companies as Brexit approaches.
Shadow Business Minister and Sheffield Brightside and Hillsborough MP Gill Furniss said Honda’s decision was “devastating news”.
She added: “Manufacturers need to have confidence in our economy but this Government’s austerity programme has failed workers and businesses. There is no plan or vision for investment in our future, particularly with the huge uncertainty about postBrexit trade.”
Barnsley MP and the Sheffield City Region’s Mayor Dan Jarvis told The Yorkshire Post: “Businesses of all sizes need certainty, and Government must provide that by spelling out a serious and
long-term programme of investment in Britain’s economy and upgrading our infrastructure.
“This includes setting out how it will replace EU Structural Funds with the UK Shared Prosperity Fund, so that businesses can plan for the future.”
And Labour MP for Rother Valley Kevin Barron said: “Tens of thousands of people rely on manufacturing for work in Yorkshire. However, many industries are being affected by a lack of future clarity and we as politicians must rectify this by agreeing an EU Withdrawal Agreement as soon as possible.”