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Honda approves Swindon closure as rescue talks fail

Published 13 May 2019

Honda has told staff at its Swindon plant that there are 'no viable alternatives' to its closure following discussions among consultation groups, unions and the UK Government.

The manufacturer has previously announced plans to close the plant, which employs 3500 staff and produces the Honda Civic hatchback.

Today, staff have been told that production will end of the current model's lifecycle in 2021. It comes as the manufacturer accelerates its electrification plans and looks to move production outside of the European Union.

This forms the first stage of the collective consultion process, which will be followed by agreeing redundancy packages. Honda says it will intensify its engagement with the Swindon Task Force set up by Secretary of State Greg Clark, in order to work with the government and stakeholders to mitigate the impact on the wider community.

“It is with a heavy heart that today we confirm the closure of Honda’s factory in Swindon," said Jason Smith, director of Honda of the UK manufacturing. "We understand the impact this decision has on our associates, suppliers and the wider community. We are committed to continuing to support them throughout the next phases of the consultation process.”

Honda has spent £2.2 billion in Swindon since it opened its factory there in 1989. In 2018 it invested an additional £200 million to increase capacity for the production of the tenth-generation Civic. 

Comments

   6 days ago

unfortunately, the UK will always have foreign businesses pulling out, not because of BREXIT, but because it is cheaper an deasier to close down an operation in the UK than in most other countries!
Lack of labour protection laws, no union power or worker councils etc...

SCR    6 days ago

How extraordinarily ironic you are, sir.

Engineer Andy    6 days ago

unfortunately, the UK will always have foreign businesses pulling out, not because of BREXIT, but because it is cheaper an deasier to close down an operation in the UK than in most other countries! Lack of labour protection laws, no union power or worker councils etc...

Comapnies shouldn't be forced to keep factories open just because someone threatens strikes: that got us near bankrupcy in the 1970s, and is not doing France very good at all at the moment. Honda have done this because sales in Europe have been falling for a long time (not the factory's fault, but the car designers and those in the marketing dept back in Japan) and they want to consolodate production at home to keep workers in Japan employed, which, whilst sad, is quite understandable.

But I agree it's nothing to do with Brexit.

IrishNeil    4 days ago

unfortunately, the UK will always have foreign businesses pulling out, not because of BREXIT, but because it is cheaper an deasier to close down an operation in the UK than in most other countries! Lack of labour protection laws, no union power or worker councils etc...

Comapnies shouldn't be forced to keep factories open just because someone threatens strikes: that got us near bankrupcy in the 1970s, and is not doing France very good at all at the moment. Honda have done this because sales in Europe have been falling for a long time (not the factory's fault, but the car designers and those in the marketing dept back in Japan) and they want to consolodate production at home to keep workers in Japan employed, which, whilst sad, is quite understandable.

But I agree it's nothing to do with Brexit.

The voice of reason, Engineer Andy, always a sensible and considered opinion to some of the comments on here. Succinctly put Andy!

De Sisti    4 days ago

High Street shops closing down usually have a sale to get rid of stock. If only Honda Swindon would do the same with their vehicles. ;-)

Edited by De Sisti on 15/05/2019 at 09:05

mmmmm    4 days ago

High Street shops closing down usually have a sale to get rid of stock. If only Honda Swindon would do the same with their vehicles. ;-)

In consideration of your joke , for those who do not know, no car OEM, keeps stocks of cars.

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