Honda is preparing to close its Swindon plant in the British manufacturing sector



[ad_1]

Honda is expected to announce the closure of its Swindon plant, jeopardizing 3,500 British jobs and hurting the British auto industry a few weeks from Brexit, according to the MP representing the factory's riding.

The Japanese automaker could announce Tuesday as early as Tuesday the closure of the plant located in West London in 2022, which would effectively bring down the shutters of its sole manufacturing site in the EU .

The decision came just two weeks after Nissan's Japanese rival Nissan announced it would no longer build its X-Trail sport utility vehicle at its Sunderland plant, the UK's largest engine manufacturing plant. .

Nissan insisted that its turn on the X-Trail was largely unrelated to Brexit, and Justin Tomlinson, Conservative MP for North Swindon, said Honda's decision was also based on the current trends. international.

"Honda has been very clear: this decision was made because of global trends and is not related to Brexit," said Tomlinson. "The plant in Turkey will also close, as the entire production of the European market is being consolidated in Japan, where the company is based."

The car industry is in a global slowdown as it tackles the international economic slowdown exacerbated by trade tensions and, in Europe, the mbadive abandonment of diesel cars.

In November, General Motors announced the closure of seven plants worldwide, including five in North America, while Ford announced last month a European restructuring plan that would result in thousands of job cuts.

At the same time, the closure of Honda, which comes so quickly after Nissan's U-turn and Ford warnings that it could further reduce its two British plants if Britain leaves the EU without a deal with Brussels, provoked the indignation of the critics. Brexit management by the British government.

"Brexit may or may not be officially blamed for the closure – we admit that other problems of the global economy also play a role," said Vince Cable, leader of the Liberal Democratic Party and former secretary from State to Business. "But the uncertainties of Brexit weigh on society."

advisable

Although Tomlinson sought to minimize the impact of Brexit on Honda's decision, it was put in place at a time of heightened trade tensions between the two G7 countries, with Tokyo refusing to abandon a new trade deal between the EU and Japan, so that Britain continues to benefit from its provisions when it leaves the EU next month.

The prospect of net exports of tariffs from Japan to the EU would have been a key factor in the decision. Under the trade agreement signed this month, Brussels is committed to reducing tariffs on cars by 10% to zero by 2027, making a production facility less attractive based in Europe.

"This consolidation is facilitated by the new EU-Japan trade agreement that will allow Honda to produce their cars in Japan and import them into the EU, rather than producing cars in Europe," said Tomlinson. Honda exports about half of its cars manufactured by Swindon in the United States.

The shutdown decision was first reported by Sky News, which announced that Honda would retain its European headquarters in Berkshire, as well as its Formula 1 racing engine division in Milton Keynes.

Honda declined to comment on the decision, saying it wanted to "communicate any significant news" to its employees and other "collaborators".

Mr. Tomlinson stated that Honda was supposed to inform staff that there would be no loss of employment or change in production until 2021. It manufactures cars in Swindon since 1992, when the first Honda Accord left their badembly line.

Last year, about 160,000 cars were built on the site, much of which is destined for export, but the production of the Civic model that it badembles ends here. 2022. A closure would have repercussions on the many British companies supplying the manufacturer. .

[ad_2]
Source link