Honda to close Swindon plant by 2021 with loss of 3,500 jobs
Vehicle monster Honda has affirmed intends to close its UK processing plant in another significant hit to the British vehicle industry, with thousands set to lose their positions.
The Japanese organization told laborers at the Swindon processing plant that following an "important and strong" conference, no feasible options in contrast to the conclusion have been found.
The Japanese organization told laborers at the Swindon processing plant that following an "important and strong" conference, no feasible options in contrast to the conclusion have been found.
Executive of Honda UK Jason Smith stated: "It is with overwhelming sadness that today we affirm the conclusion of Honda's industrial facility in Swindon. We comprehend the effect this choice has on our partners, providers and the more extensive network. We are focused on proceeding to help them all through the following periods of the discussion procedure."
The Japanese carmaker had reported plans in February to leave the site in South Marston close Swindon. It said the change was not because of Brexit but rather on the grounds that it is moving concentration to electric vehicles with most interest expected to be in Asia.
Prime Minister Theresa May’s official spokesperson said: “Clearly, this is a disappointing decision, despite the best efforts of local MPs, civic and business leaders and the trade unions since Honda’s initial announcement in February. We recognise this is a worrying time for affected employees, their families and businesses in the supply chain.”
Business secretary Greg Clark has set up a local taskforce which aims to ensure that employees are able to move on to new skilled employment. That taskforce is due to hold its next meeting next week.
Honda is one of a number of car manufacturers to cut back its presence in the UK this year. Nissan said in January that it would build its new X-Trail model in Japan instead of Sunderland, despite earlier reassurances.
Ford is planning to offer redundancy to more than 500 staff at its Essex office, while Jaguar Land Rover confirmed in January that it would cut 4,500 jobs from its 40,000-strong UK workforce as it attempts to deal with a sharp drop in demand in China.
Business secretary Greg Clark has set up a local taskforce which aims to ensure that employees are able to move on to new skilled employment. That taskforce is due to hold its next meeting next week.
Honda is one of a number of car manufacturers to cut back its presence in the UK this year. Nissan said in January that it would build its new X-Trail model in Japan instead of Sunderland, despite earlier reassurances.
Ford is planning to offer redundancy to more than 500 staff at its Essex office, while Jaguar Land Rover confirmed in January that it would cut 4,500 jobs from its 40,000-strong UK workforce as it attempts to deal with a sharp drop in demand in China.
Unite national officer for automotive industries Des Quinn said he believed there was a case for keeping the plant open and that the government would have provided public funding.
“It would have made Honda a global leader in emerging battery technology and in a strong position to exploit the growing global market for electric vehicles in the coming years,” Mr Quinn said.
“Instead we have this body blow which is nothing short of a betrayal of the workforce, customers and the wider supply chain which relies on Honda Swindon for work.
“Unite can only conclude that Honda is taking a strategic decision to retreat out of Europe in favour of protecting its North American operations and avoiding president Trump’s tariff threat on cars made in Europe.”
Honda said it was closing the Swindon factory as part of a broader global strategy “in response to changes to the automotive industry”.
The company also faces the reality of uncertain tariffs on vehicle exports from the UK after Brexit. Meanwhile, Japan and the EU recently finalised a trade deal that will see tariffs on Japanese vehicles imported into the trading bloc reduced from 10 per cent to zero.
“It would have made Honda a global leader in emerging battery technology and in a strong position to exploit the growing global market for electric vehicles in the coming years,” Mr Quinn said.
“Instead we have this body blow which is nothing short of a betrayal of the workforce, customers and the wider supply chain which relies on Honda Swindon for work.
“Unite can only conclude that Honda is taking a strategic decision to retreat out of Europe in favour of protecting its North American operations and avoiding president Trump’s tariff threat on cars made in Europe.”
Honda said it was closing the Swindon factory as part of a broader global strategy “in response to changes to the automotive industry”.
The company also faces the reality of uncertain tariffs on vehicle exports from the UK after Brexit. Meanwhile, Japan and the EU recently finalised a trade deal that will see tariffs on Japanese vehicles imported into the trading bloc reduced from 10 per cent to zero.