Hammer blow as Honda closes plant with the loss of 3,500 jobs
THOUSANDS of jobs are set to be lost after Japanese car giant Honda confirmed plans to shut its factory in Swindon in 2021 in a devastating blow to the motor industry.
Workers at the site were sent home for the day after being told it will close at the end of the current model’s production lifecycle.
The factory employs 3,500 workers, but at least as many work for companies across the country which supply Honda with parts and services.
One such firm, Kasai, manufactures interior components for Honda and Nissan, with a plant in Merthyr Tydfil in South Wales, employing 200 people.
Honda said Brexit was not to blame for the decision, but union officials and opposition MPS said it was obvious uncertainty over the UK’S future trading relationships played a part.
Honda said: “This proposal comes as Honda accelerates its commitment to electrified cars, in response to the unprecedented
The planned closure is very worrying for all the small businesses
changes in the global automotive industry.
“The significant challenges of electrification will see Honda revise its global manufacturing operations, and focus activity in regions where it expects to have high production volumes.”
Honda said under the proposed restructure, the current role of its UK manufacturing business (HUM) as a global manufacturing hub may no longer be viable.
Katsushi Inoue, Honda’s chief officer for European regional operations and president, Honda Motor Europe, said: “In light of the unprecedented changes that are affecting our industry, it is vital that we accelerate our electrification strategy and restructure our global operations accordingly.
“As a result, we have had to take this difficult decision to consult our workforce on how we might prepare our manufacturing network for the future. This has not been taken lightly and we deeply regret how unsettling today’s announcement will be for our people.”
HUM director Jason Smith said: “We understand the impact this proposal will have on our associates, wider supplier base and the local community. We are committed to supporting associates to help them through this difficult time.”
Business Secretary Greg Clark said the decision was “devastating” for Swindon and the UK, 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.”
Mike Cherry, chairman of the Federation of Small Businesses said: “The planned closure of the Honda plant is not only devastating for the skilled workforce employed there, but a very worrying time for all the small businesses throughout Honda’s supply chain, and especially local firms.”