Brexit: Honda closes factory in UK and fear of corporate flight grows

"It's a terrible decision for Swindon and for the UK"UK Trade Minister Greg Clarg reacted in a statement issued shortly thereafter.

Honda has justified its decision by the need to restructure its production in a context marked by many changes in the global automotive market. However, Honda's European headquarters will remain in the UK, says a company statement.

Honda announcement deepens fears that Brexit uncertainty is triggering corporate theft.

Honda's plans are added to a similar decision made by the Japanese Nissan, and the warnings of the American Ford and the British Jaguar Land Rover on the risks of an un-negotiated exit from the European Union (EU).

In parallel, thousands of companies launched emergency plans before London broke its links with Brussels in an unregotiated way on March 29, according to the British Chamber of Commerce.

The UK Parliament rejected in January the exit conditions agreed with the EU. The country will therefore leave the bloc without a transition period within six weeks if it does not ratify a pact or ask for an extension of time, which Prime Minister Theresa May, discard it for the moment.

A Brexit "hard"without an agreement with the EU, British ports could collapse in the beginning and now complicate customs procedures by imposing new taxes on imports and exports.

Many UK-based companies maintain international manufacturing chains in which certain components cross the Channel in both directions before being badembled into the final product, so that tariffs and delays at the border may affect their operations. .

Last year, The Netherlands captured 42 British companies, or with strong structures in the UK, because of Brexit, and is trying to attract another 250, according to the Dutch government.

Other European countries such as Ireland, France, Germany, Belgium and Luxembourg are also trying to take advantage of the opportunities offered by the British break with the EU.