Honda confirms closure of Swindon plant – live business | Business

However, senior MP Steve Baker, who supports Brexit, relied on Ian Howell's comments that switching to electrification was the only factor behind the closure.

Mr Baker, former minister of the exit department of the European Union, is an influential member of the European research group. The backbench group lobbied prime minister Theresa May for her to negotiate with the EU on World Trade Organization terms after March 29, instead of on Wednesday. have a withdrawal period.

Back on Honda, the political consequences of the closure of the Swindon factory are just beginning.

Pro-European politicians have ignored Honda's claim that Brexit was not the main reason for its decision.

David Lammy, the Labor MP, said the decision was "heartbreaking".

Liberal Democratic Party leader Vince Cable said it was "ridiculous" to claim that it was not related to Brexit.

On the FTSE 100, HSBC is the biggest country down, down 3.3% early in the session, after posting disappointing results this morning.

Rising costs and the fall in the stock market have begun trading activities, while warning that an economic slowdown in China and the United Kingdom would create new hurdles this year.

Chief Executive Officer John Flint, who has completed his first year as head of the company, said the bank may need to trim its investment plans to avoid missing a key growth target. revenue faster than costs for a second consecutive year.

HSBC's performance led to a decline in another emerging market-driven bank Standard Chartered 2.9%.

The FTSE 100 is down 0.4%, while the mid-cap FTSE 250 has lost 0.2%.

In a statement released this morning, Honda announced that it would focus its future manufacturing activity in areas where it expects high production volumes.

Katsushi Inoue, Director of Honda's European Regional Operations, said:

In light of the unprecedented changes affecting our industry, it is critical to accelerate our electrification strategy and restructure our global operations accordingly.

As a result, we had to make this difficult decision to consult with our staff on how we could prepare our manufacturing network for the future. This has not been taken lightly and we deeply regret how much the announcement made today will be troubling for our people.

Swindon, which was unveiled as the global production center for the Civic only in 2017, produces 150,000 cars a year, one every 69 seconds.

Still, its "current role as a global manufacturing center is perhaps no longer viable," Honda said.

Automakers generally have a five to seven year investment cycle for producing each model, but Howells said the decision on what to do in Swindon was "clashed with this shift to electrification." ".

Staff will now have a consultation on their future. The company will offer a "support package" to employees who lose their jobs, Howells said. He added:

Clearly, it's a very sad day for us.

Honda insists that the decision to close the Swindon plant is not tied to Brexit, but rather to the need to target key markets as the auto industry moves quickly to electrification.

Ian Howells, executive vice president of Honda Motor Europe, said the industry was facing "unprecedented change in the sector" on a "global scale" in an interview on BBC radio.

This is not a Brexit problem for us. This decision was taken on the basis of global problems.

"We have to look very closely at where we invest," he said. Honda's main markets are the United States, China and Japan.

Greg Clark, the government secretary of business, said Honda's decision was a "business decision based on unprecedented changes in the global market".

It's "a devastating decision for Swindon and the UK," he said.

This news carries a particularly hard blow to the thousands of skilled and dedicated employees who work in the factory, to their families and to all employees in the supply chain.

I will convene a working group in Swindon with local MPs, municipal and business leaders, as well as union representatives to ensure that the skills and expertise of the workforce are met. preserved, and that these high-value employees have access to a new, qualified job.

The decision is also a blow to the recent government investment in battery technology – although Honda has not been a direct beneficiary of state aid, unlike Nissan and other automakers. Clark said:

The automotive industry is experiencing a rapid transition to new technologies. The UK is one of the leaders in the development of these technologies and it is therefore deeply disappointing that this decision has been made now.

The Japanese manufacturer Honda will cease production in Swindon in 2021. The factory employs 3,500 people.

Despite the political turmoil, European stock markets should open flat this morning.

The UK's FTSE 100 edged down 0.24% yesterday after a week of gains.

Metro points to the comment of North Swindon Conservative MP Justin Tomlinson that Brexit is not to blame for the closure after talking to Honda and confirming the plans yesterday.

Tomlinson made it clear that he thought the decision was made by "global trends and not Brexit" and a retreat by the automaker into its domestic Japanese market. Tomlinson has campaigned for the exit of the EU.

Hello and welcome to our slippery coverage of the global economy, financial markets, the eurozone and businesses.

The struggles of the British car industry over the last two years are well known and we are awaiting the confirmation of the last blow today: the exit of the Honda factory in the United Kingdom.

An announcement on the future of the Swindon Honda plant is expected this morning after the company has informed its employees. If this were confirmed, about 3,500 jobs would be in danger, while symbolizing the decline of one of the successes of British industry.

The auto industry around the world is facing a slowdown in the Chinese economy as well as a political and regulatory backlash against pollution caused by diesel vehicles in Europe. However, fears over Brexit – who have been criticized for curbing investments – have also followed the industry.

Honda, along with other Japanese automakers Nissan and Toyota, was lured to the UK in the 1980s by the Thatcher government with the promise of easy access to European markets. The departure of Honda so soon after Nissan overturned the decision to build its X-Trail SUV in Sunderland is another blow for the current government.

After a quieter start to the week economically, this morning is the latest update of the British labor market, with unemployment figures and wage growth from the Office of National Statistics.

No change is expected in the overall unemployment rate, which remained at 4% in November, its lowest level in four decades. However, annual wage growth should reach 3.4% in December, which would be a positive news for the British people in a context of considerable economic uncertainty.

L & # 39; s calendar

• 9.30 GMT: UK employment and wage data for December
• 10am GMT: German-Zew economic confidence index for February