Honda plans to close its plant in the UK

Honda plans to close its plant in the UK

February 19, 2019 0 By autotimesnews

It is expected that this will happen in 2022, when the next generation of Honda Civic generations will come – in production, only this model remains. Officially, the company announced its decision, but the European media called the issue actually resolved.

The source on this issue was the Sky News channel, which reported with reference to its own sources in the company about the decision of Honda Motor to completely curtail production at the plant in Swindon in the UK. Over the years, it produced the Accord, Jazz, CR-V, and at the moment – the Civic with a hatchback body in versions for Europe and other markets, incl. USA.

It is argued that Brexit is one, but not the main reason for making this decision. The most significant factors are called “global economic change”. Particularly highlight the intentions of the US authorities to impose additional fees on imported cars to the country – this would affect the Civic, making it less competitive. In addition, the Japanese authorities and the leadership of the European Union are close to concluding an agreement on the reduction of tariffs for cars produced in Japan and imported into the EU. Together with Brexit, all this makes production in the UK less profitable.

Despite the lack of official confirmation from Honda Motor (comments are expected soon), the attitude to the Sky News message is quite serious, since the topic of closure of the British Honda plant appears frequently in recent months. If the company stops working, about 3,500 people will lose their jobs, and the output of cars in the UK will be reduced by about 10% from the current 1.5 million cars a year.

It is clarified that until 2021, staff reductions should not occur.