Honda set to close Swindon car plant
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Japanese carmaker Honda is set to announce the closure of its Swindon plant in 2022, putting 3,500 jobs at risk, sources say.
The Japanese carmaker will shut the plant in 2022 but retain its European headquarters in Bracknell, Berkshire.
Sources say Honda will make an announcement on the future of the company on Tuesday morning.
Honda declined to comment on the claims, first reported by Sky News. The government also declined to comment.
But local Conservative MP Justin Tomlinson said he had spoken to Honda, which confirmed it was consulting with “all staff”.
“There is not expected to be any job losses, or changes in production until 2021,” Mr Tomlinson said.
Honda produces more than 100,000 Civic cars in Swindon for the global market. It is the firm’s only factory in the EU.
What do the unions say?
Unite the union said the reports, if confirmed, would be a “shattering body blow” to UK manufacturing.
Its national officer for the automotive sector, Des Quinn, said: “We are seeking urgent clarification from Honda on the implications of these serious reports.
“We will be doing everything we can in the coming days and weeks to support our members at this grave time for them, their families and the UK economy.
“This will also affect thousands of jobs in the extensive supply chain across the country.”
Is this about Brexit?
In a tweet, Mr Tomlinson said: “Honda are clear this is based on global trends and not Brexit, as all European market production will consolidate in Japan in 2021.”
The car industry has also been struggling with falling demand in China and a slowdown in diesel sales.
Honda’s Swindon plant produces both VTEC turbo petrol engines and diesel i-DTEC engines.
But according to Sky, Brexit is understood to be one factor in the decision, with the carmaker concerned about the imposition of new tariffs after the UK leaves the EU.
- Nissan £60m in doubt after investment U-turn
- Jaguar Land Rover posts £3.4bn loss
Rival Japanese carmaker Nissan also cited Brexit as one reason for cancelling plans to build its X-Trail SUV in Sunderland earlier this month.
And Ford, Toyota and Jaguar Land Rover have expressed concern about the risk of a potential no-deal Brexit in recent months.
Were there clues this was coming?
Only last autumn, Honda said it was committed to UK-based production regardless of the outcome of Brexit negotiations.
But last month, it said it would shut the Swindon factory for six days in April as part of its preparations for any disruption caused post-Brexit.
The company said the move was to ensure it could adjust to “all possible outcomes caused by logistics and border issues”.
The firm said it would help in recovering lost production if shipments of parts were held up at borders.
Last year, the senior vice-president of Honda Europe warned that if the UK left the EU without a deal, it would cost his company tens of millions of pounds.
Ian Howells told the BBC that quitting the bloc without an agreement would affect the carmaker’s competitiveness in Europe.
A history of Honda Swindon
Honda UK is situated on a former airfield spanning 370 acres to the north east of Swindon.
The carmaker bought the site in 1985 and established Honda of the UK Manufacturing to inspect vehicles pre-delivery.
In 1989, the operations expanded to producing engines. Three years later, a car plant was added, which began producing the Honda Accord.
Since then, the site has gone on to produce the Jazz, CR-V, Civic and Type R.
A second Honda car plant opened in Swindon in 2001, raising production capacity to 250,000 a year.
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