Reports suggest Japanese manufacturer will announce plans to close plant in 2022, putting 3500 jobs at risk
18 February 2019

Honda is expected to announce that its production facility in Swindon will shut in the next three years, according to several news reports.

The closure of the Wiltshire plant, which is the international home of Civic production, could be disclosed in a plan by the Japanese manufacturer as early as tomorrow morning, Sky News suggests. 

Although it's yet to be confirmed by Honda, the move would be a huge blow for the Government’s hopes of the UK remaining an established manufacturing hub after Brexit, as well as the firm’s 3500-strong workforce in Swindon. 

It's thought that the threat of import tariffs for European-made cars from Donald Trump’s administration is a significant factor in the plant’s future, because the US is one of the Civic's main markets. Other factors, including uncertainty over Brexit and the decline in demand for diesel vehicles, are thought to be impacting on the viability of the factory.

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But perhaps the main motivation behind Honda's unconfirmed decision is the new deal the Japanese government has struck with the EU. This means tariffs on Japanese-made cars coming into 27 European countries will be phased out this year, reducing the financial benefit of Honda having a UK hub. The Civic is also built in Turkey, which is likely to be more favourable as a factory from a cost perspective.

Honda UK Manufacturing, which was established in Swindon in 1985, has received a total investment of £1.5 billion across the facility's numerous buildings. But the brand's future was looking gloomy way before Brexit. It mothballed one half of its Swindon plant after sales failed to recover following the 2008 financial crisis, and then decided to produce just the Civic hatchback, dumping the Jazz and CR-V.

Back in 2008, Swindon produced more than 230,000 cars annually, but with production of the Accord, plus the Jazz and CR-V, since moved elsewhere in the world, that number has nearly halved.

Read more:

Honda Civic 2019 review

Honda to slash production in Swindon, placing 340 jobs at risk

Honda Accord axed in the UK

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Comments
12

18 February 2019

Honda would seem to be jumping the gun somewhat, no?

With us being within the EU, and the resultant US tarrifs, being the thing killing off the Swindon factory?

18 February 2019
CarNut170 wrote:

Honda would seem to be jumping the gun somewhat, no?

With us being within the EU, and the resultant US tarrifs, being the thing killing off the Swindon factory?

No, it is Brexit killing it you dimwit.

18 February 2019
Cheltenhamshire wrote:
CarNut170 wrote:

Honda would seem to be jumping the gun somewhat, no?

With us being within the EU, and the resultant US tarrifs, being the thing killing off the Swindon factory?

No, it is Brexit killing it you dimwit.

This is very sad news if true. British manufacturing is in long term decline due to cost pressures.

Did you not read the article Chelthamshire? There are a number of important reasons given, and yes Brexit is one of them. No mention of declining sales, the styling launched in 2006 has led to sales 1/3 of the level from before - Honda dropped the ball, not enough people liked the devisive styling, so they should take blame for a huge proportion of the issue.

I'm pretty sure you wouldn't call anyone a Dimwit to their face, so maybe time you grew up eh?

18 February 2019
CarNut170 wrote:

Honda would seem to be jumping the gun somewhat, no?

With us being within the EU, and the resultant US tarrifs, being the thing killing off the Swindon factory?

You're obviously assuming any tariffs (none have yet been announced) would not apply to the UK as well!

18 February 2019
Very sorry for the dedicated workforce at Swindon , hope the owners of Ineos and Dyson reconsider their plans for manufacturing abroad.

18 February 2019

Dyson on moved the registered office and 2 people abroad.  3500 people will remain workingh in the UK

18 February 2019
chris1969 wrote:

Dyson on moved the registered office and 2 people abroad.  3500 people will remain workingh in the UK

Nope . Manufacturing on Singapore .

18 February 2019

...may be a common combination  but this time it’s Trumps tarrifs  and Turkeys cheap Labour that are key factors. Probably been inevitable for a while now.

Steam cars are due a revival.

18 February 2019

Not a massive surprise. IF the prospect of a hard Brexit was the main driver, surely they'd have waited until after the 29th March to make their announcement.

The EU/Japan trade agreement is clearly a major factor, but the terrible sales that Honda have in Europe surely are the biggest issue. If Honda had 10 years ago produced something as successful as the Qashqai and the factory was humming, things would be very different

18 February 2019

Perhaps, in Europe at least, they should concentrate on building decent looking cars that people want rather than looking for excuses to influence Goverment policy

typos1 - Just can’t respect opinion

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