Honda to shut UK plant, 3,500 jobs ‘on the line’
LONDON: Honda Motor Co plans to close its factory in the United Kingdom in the biggest blow yet to the British car industry already buckling under thousands of job cuts and the loss of key models in the run-up to Brexit.
The site in Swindon, 128km west of London, is the nation’s fourth-largest automotive plant and employs about 3,500 workers where the Honda Civic hatchback is made.
Production for Europe will consolidate in Japan in 2021, said North Swindon member of parliament Justin Tomlinson.
Honda also plans to cease production in Turkey, where the Japanese carmaker makes the Civic sedan, he said.
The UK has long been a Japanese hub for European vehicle production, with Honda, Nissan Motor Co and Toyota Motor Co owning three of the country’s six largest car-making plants.
That’s quickly unravelled, with Nissan this month reneging on plans to built the X-Trail sport utility vehicle in Sunderland — partly due to the unresolved status of Erupean Union (EU)-UK trade after Brexit.
UK-made products also risk being disadvantaged by a new treaty that will gradually eliminate tariffs on Japanese imports to the EU, though Tomlinson said the divorce wasn’t a factor in Honda’s move.
“They are clear this is based on global trends and not Brexit,” Tomlinson said.
“Honda will be consulting with all staff and there is not expected to be any job losses or changes in production until 2021.”
Honda declined to comment on the closure.
“At this point, we are unable to comment regarding the speculation,” said the carmaker.
“We take our responsibilities to our associates very seriously and will always communicate any significant news with them first.”