Honda proposes closing United Kingdom plant that builds Civic Hatchback, Type R

Honda to close Swindon plant in 2022 putting at risk 3,500 jobs | Latest Brexit news and top stories

Honda to close Swindon plant in 2022 putting at risk 3,500 jobs | Latest Brexit news and top stories

The United Kingdom must urgently end the uncertainty over its exit from the European Union so that businesses can have clarity about the future, business minister Greg Clark said just hours after Honda said it would close its auto plant in Britain. This decision was not taken lightly, and we deeply regret the trouble caused, he added.

This morning, Honda said the closure was in response to "unprecedented changes in the global automotive industry".

A journalist looks at a projection about Honda's British factory while Honda Motor Chief Executive Takahiro Hachigo (not in the picture) speaks at a news conference in Tokyo, Japan, February 19, 2019.

Honda Motor Co. said Tuesday it will close its British plant in 2021 as it faces severe competition in Europe for electric vehicles, citing a slowdown in its business on the continent. Honda operates the Alliston, Ontario, and Greensburg, Indiana, plants in Canada and the U.S. Both now build the Honda Civic sedan models.

Honda also announced Tuesday it will cease Civic sedan production at its plant in Turkey in 2021, as part of global restructuring, although that plant will continue to operate.

"We've always seen Brexit as something we'll get through, but these changes globally are something we will have to respond to", Ian Howells, the senior vice president for Honda in Europe, told the BBC in a statement. Alastair says 'Honda: real business, real jobs, real damage done by Brexit.

"Honda seems to have been preparing for this for a long time".

Honda to close Swindon plant in 2022 putting at risk 3,500 jobs | Latest Brexit news and top stories
Honda urged to rethink Swindon plant closure with 3500 jobs under threat

Speaking ahead of the formal decision, finance worker Sue Davis, 49, also told AFP news agency the move would be "devastating" for the area.

"For employees, our members and the wider workforce, both in the plant and in the supply chain, to hear about this through the media I think is disrespectful and disgraceful", Mr Tomala said.

Local lawmakers described the news as devastating and unions pledged to fight for the jobs. "This is a commercial decision based on unprecedented changes in the global market". Just two weeks ago, Nissan officially gave up on its plans to produce its X-Trail in the country. A statement issued this afternoon said: "At this point, we are not able to make any comments regarding the speculation".

Honda earlier said that its only European Union plant will shut in 2021, becoming just the latest Japanese firm to downsize operations in Britain as Brexit looms.

Japanese electronics giants Sony and Panasonic, as well as several banks, have moved some of their operations out of Britain since the 2016 referendum that set Brexit in motion.

"While Brexit is not mentioned by the company as a reason for the announcement, we believe that the uncertainty that the Tory government has created by its inept and rigid handling of the Brexit negotiations lurks in the background".

"The United Kingdom will not be able to strike better trade deals than it now has before it leaves the European Union, so it starts to look like a less attractive place to build cars", Christian Stadler, auto expert and professor at Warwick Business School, told CNN.




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