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Thousands of families were facing an uncertain future last night, as Honda informed leaders and politicians of plans to shut down its Swindon plant by 2022.
MPs and councilors on all sides have announced this decision as devastating news for the city. The South Marston plant is expected to lose more than 3,500 jobs. The drop in diesel sales and the shift to the production of hybrid and electric cars were blamed for being the main reasons.
Last night, Honda remained silent about the exact number of jobs that would be lost. A statement from the Japanese company is expected this morning.
And the actual number of jobs deleted could be even higher. Yesterday, Honda could not communicate with Honda to say what the decision to close the plant would mean for Honda Logistics UK, based in South Marston, and for the Stanton House hotel.
Prime Minister Theresa May was briefed on the situation yesterday and said she was deeply concerned by the ministers' plan to set up a working group to support and support staff in the event of layoffs. A similar group was created following Honda's announcement in 2013 of 800 job cuts.
In a joint statement, the MP for North Swindon, Justin Tomlinson, and Robert Buckland, said: "As nothing has yet been confirmed, we are very disappointed and surprised to learn that Honda is preparing to close its Swindon plant in 2021.
"Honda told us that they would consult all staff and that there should be no job loss or change of production until 2021.
"Our thoughts are with other residents and friends who work at Honda and in the local supply chain. We will do everything in our power to support them as news arises. "
Yesterday, it was thought that senior executives had spent most of the afternoon at a meeting with business leaders to discuss job losses. The unions said they would support those in the line of fire.
Tomlinson, who boasted last month on social media that Honda remained attached to Swindon, called the company's move a shock to Swindon. Others went further, believing that the decision to transfer production to Japan was devastating for the city.
Roger Smith, Ward Councilor for Stratton St Margaret and South Marston, said, "It's just devastating for the community. I live close to the plant. I have friends working at the factory, who have been working there for many years. This is terrible news for them and their families. Many people are indirectly employed in the supply chain and will be affected.
"I remember the closure of the Railway Railway Works in 1986. The city recovered at that time and I think it will still recover.
"It's immensely sad," said Colin McEwen, parish council president for South Marston.
Kate Linnegar, Labor candidate for North Swindon, said: "If it is confirmed, it would be a blow for Swindon. My deepest condolences go out to Honda 's 3,500 employees and their families, as well as hundreds of other employees in the supply chain. Their livelihoods were suddenly jeopardized. "
Many quickly made the connection between Honda's decision to close the plant and Brexit.
Molly Scott-Cato, Green Party MEP for the South West, said: "That day, we will remember that day when the fear of the project became a reality of Brexit, the day when the magnitude Social and economic costs of the EU exit hard in the South West. Now that we know what Brexit means, in reality they all have the right to think again. "
However, conservative politicians denied that Brexit played a role in Honda's decision to leave Swindon. Justin Tomlinson and Robert Buckland said, "Honda has been very clear. This decision was made because of global trends and is not related to Brexit. The factory in Turkey will also close, as the entire production of the European market is being consolidated in Japan, where the company is based. "
The drop in sales of diesel cars and the decision to build more electric or hybrid vehicles also affected the decision. The company produces about 150,000 cars in Swindon a year, compared with 1.9 million in Japan, which is clear.
International Trade Secretary Liam Fox said closing the plant would be "very unfortunate" but "it is premature to comment before hearing what the company has to say".
S addressing the BBC during a commercial visit to Israel, he said: "UK auto production has been very strong in recent years, but we found that diesel emissions – some rules that govern this situation – and that there has been a sharp drop in demand.
"This sharp drop in consumer demand will inevitably affect producers."
However, a new trade agreement between Japan and the EU, which came into effect on February 1, also played a role in Honda's decision to leave Swindon, added MPs. This deal would make it easier for the auto giant to produce its vehicles in Japan and ship them to Europe.
The remaining member, Rachel Reeves, chair of the Select Committee on the Commons' commercial, energy and industrial strategy, said Honda's "devastating" decision to withdraw from Swindon meant that the government had to keep the UK in check. 39, customs union.
"The Prime Minister must now immediately exclude any agreement and keep us in the single market and in the customs union rather than risk causing further fatal damage to our automotive industry," she said. . "Japan and the EU have a free trade agreement guaranteeing free access to customs duties. It would be an act of madness to reject this, with frictionless access to the EU market, in the desperate hope that we can negotiate a better deal. "
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