Daily Mail

HONDA QUITS UK

10,000 may lose jobs as Japanese firm shuts plant Boss had claimed site wasn’t under any threat

- By James Burton Chief City Correspond­ent

Honda is set to shut its British factory, putting nearly 10,000 jobs at risk in a ‘shattering body blow at the heart of UK manufactur­ing’.

The Japanese firm’s swindon plant is expected to close in 2022 amid a slump in demand as drivers shun diesel cars over pollution fears.

It comes months after a senior Honda vice president said he expected the flagship site – Honda’s only European factory for cars – to remain open.

Production will be shifted to Japan, insiders said, where Honda also hopes to bulk up its electric car operations.

Honda’s board is expected to rubberstam­p the decision at a meeting in Japan tonight. It is thought the decision was made only in the past few weeks.

In addition to the 3,500 who work at the plant, advice firm Japan Intercultu­ral Consulting said another 6,000 roles were also at risk in supply firms.

Ian Howells, senior vice president for Honda Europe, made reassuring comments about the site in september.

He said: ‘We are right behind our swindon approach, and really it hasn’t come up that we would have to look at putting swindon somewhere else.

‘The logistics of moving a factory the size of swindon would be huge, and as far as we’re concerned from a European perspectiv­e, and as far as our Japanese head office is concerned, we’re right behind supporting continued production at swindon.’

Honda has repeatedly warned that Brexit poses a major risk to its operations, although sources said the firm was driven by changes in the market rather than our departure from the EU.

It is the latest blow to the car industry after thousands of job cuts were announced by Jaguar Land Rover and Ford, and nissan ditched plans to expand here.

des Quinn, of trade union Unite, said: ‘This would be a shattering body blow at the heart of UK manufactur­ing. We are seeking urgent clarificat­ion from Honda.’ The swindon factory churns out 160,000 vehicles a year.

The 370-acre plant, on a former airfield bought by Honda in 1985, first made the Honda accord in 1989 and went on to produce the Jazz, CR-V, Civic and Civic Type R models. In 2015, the workforce produced its three millionth car. However, the plant’s success relies on customers who want to buy diesel vehicles.

The fuel is increasing­ly unpopular and facing heavy taxes due to concerns it produces pollutants which damage the environmen­t and harm health.

There was a 30 per cent fall in UK diesel sales last year, accord-

ing to the society for Motor Manufactur­ers and Traders. demand across Europe fell 18 per cent. This month Honda said it planned to cut production and hundreds of temporary staff in swindon due to a decline in diesel sales.

Meanwhile, a free trade deal signed by the EU means tariffs between Japan and the bloc are being eliminated – making it far cheaper for Honda to move production back to its home country.

Robert Buckland, Tory MP for swindon south, said: ‘This is devastatin­g news for my community, and I’m working with the Government and with Honda to seek support for my constituen­ts.’

Honda has warned it could face tens of millions of pounds in costs if we leave the EU without a deal, and is shutting the swindon site for six days in april to help it adjust to Brexit. Lib dem leader sir Vince Cable said: ‘Brexit may or may not be officially blamed for the closure – we accept that other issues in the global economy are also a factor. But Brexit uncertaint­y is weighing on the company.’

The closure will not affect any jobs until 2021 at the earliest, sources said.

Honda will keep open its European headquarte­rs in Bracknell, Berkshire, which focuses on marketing and corporate work.

Honda was planning to announce the closure this morning, but details leaked early.

a spokesman said: ‘ at this point, we are not able to make any comments regarding the speculatio­n.

‘We take our responsibi­lities to our people very seriously and will always communicat­e any significan­t news with them first.’

‘Devastatin­g for community’

 ??  ?? End of the line: Staff at Honda’s Swindon plant
End of the line: Staff at Honda’s Swindon plant

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