Shock Honda Swindon closure announcement imminent

Honda: Japanese car manufacturer to SHUT Swindon factory | Daily Star

The Japanese auto maker, which would not confirm the news to Reuters, said last month it would reduce the production volumes in Swindon and cut some jobs at the plant.

Honda has officially announced plans to close its Swindon factory in 2021, which puts 3,500 jobs in the firing line.

"Decisions like Honda's this morning demonstrate starkly how much is at stake", Clark said, adding that the decision was a very big blow.

The UK forms part of our global network of manufacturing plants, so the only place we produce the vehicle we produce at Swindon is in Swindon itself, he had said.

But it has struggled in Europe in recent years, and the industry faces a number of challenges, including declining diesel demand and tougher regulations, alongside the uncertainty over Britain's departure from the European Union, due in March. Clark said that is a "devasting decision" for Swindon.

The company claimed in September it was "right behind" the plant, which makes 160,000 Honda Civics a year. Honda plans to import electric vehicles from Japan and China into Europe and boost production of the Civic in North America. The plant will shut in 2021, Honda announced, "at the end of the current model's production lifecycle".

It blamed "unprecedented changes" to the automotive industry that will now see it switch its focus onto electric vehicles, a move that renders the United Kingdom "no longer viable".

Tomlinson shed light on the reports and said that Honda had made a decision to shut down the Swindon plant due to global business trends.

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Yesterday local Tory MP Justin Tomlinson said he had been assured that the closure "based on global trends and not Brexit" - however, the timing of the announcement will be viewed as a further blow to the UK Government with just 38 days to go until it leaves the bloc.

Honda said Brexit was not the driving force behind its decision.

Meanwhile, a new Japan-EU trade deal means Japanese firms can now enjoy frictionless trade with Europe without having to locate there, meaning it may make more business sense to relocate to its home market.

Nissan Motor Co. said it will cancel plans to produce its next-generation SUV at its Sunderland plant in northeastern England, saying it needed to optimize its regional investment strategy, while indicating Brexit obscurity also played a role.

Hachigo's comments that the decision was not related to Brexit are unlikely to take the sting out of the job losses for the British public, or politicians. The factory now makes the Honda Civic and is capable of producing as many as 150,000 of the cars a year, CNN reported.

Consultation activity will begin today, and HUM will be working closely with its workforce, including the recognised trade union, Unite the Union, over the months ahead.

According to the Japan External Trade Organization, known as JETRO, some 869 Japanese companies operated in Britain as of October 2017, but many are concerned a no-deal Brexit would delay customs procedures and hit their trade operations.

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