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LONDON – Japanese automaker Honda has become the latest company make plans to leave Britain, as a global force, is reorganizing the auto industry and the country is preparing to exit the European Union.
Honda will close its plant in Swindon, England, which will employ 3,500 workers by 2021, according to a statement by two MPs, Justin Tomlinson and Robert Buckland, who have been in contact with the automaker.
Honda refused to answer questions about the move, previously reported by Sky News. "At this point, we are not able to comment on speculation," the company said in a statement sent via email. "We take our responsibilities to our associates very seriously and will always provide them with important information first."
But in a joint statement, MM. Tomlinson and Buckland confirmed the media reports about the upheaval and said they were "disappointed and surprised" about the plant's disappearance in two years.
"Honda announced today that it would consult all staff and that there should be no loss of employment or change in production before 2021" , said the legislator in a statement. "The entire production of the European market is being consolidated in Japan, where the company is based." They said that production in Turkey would also be affected.
Honda is following other companies that have fallen back in the face of sluggish markets, stricter environmental regulations and the challenges of handheld technology companies pursuing their goals for electric and autonomous cars.
Last month, Ford had announced the removal of thousands of jobs across Europe, as the rules on emissions and declining demand weighed on its profits. Another US automaker, General Motors, has withdrawn from Europe in 2017 after lingering losses in the region.
But the losses in Britain, while the country is trying to leave the European Union, have been striking. Nissan announced in early February that it would produce the next generation of its X-Trail SUV at its Kyushu plant in Japan, rather than at its plant in Sunderland, England. The factory will continue to manufacture other models.
Like Nissan, Honda is expected to benefit from a new trade agreement between the European Union and Japan, which will facilitate the production of cars in Japan for export to the bloc. Their production lines in Japan will also be closer to markets considered to have greater growth potential, similar to China and Indonesia.
The sales market is evolving around the world. Car sales to individual customers appear to have peaked in the United States last year. An economic slowdown in China has deflated sales in this region. Technology companies in Silicon Valley are increasingly competing with manufacturers.
"All of this represents a huge amount of resources for automakers," said Peter Wells, professor at the Center for Automotive Industry Research at Cardiff Business School. "They must access these new markets, restructure their operations; it's a huge financial burden. This puts pressure on the entire sector. "
"Everything is going on around this industry and it's a hectic strategic time for the participants," he said.
The persistent stalemate around Brexit has made business planning more difficult after March 29, the day they left. Investment in the country's auto industry fell by half in 2018, prompting a recent call from the car manufacturers' trade association.
"Brexit is the clear and present danger and, with thousands of jobs at stake, we urge all parties to do everything in their power to preserve us from" not agree "", said Mike Hawes, chief executive of the organization, referring to the country perspective leaving the European Union without an agreement on the conditions of departure.
Honda's decision is part of a series of unfortunate announcements in Britain in recent months. British automaker Jaguar Land Rover has announced that it would remove 4,500 people from its staff because of "geopolitical and regulatory disruptions". Dyson, the household appliance company known for its vacuums, is moving its headquarters from southwestern England to Singapore. bring an electric vehicle to the market.
Nissan's president in Europe, Gianluca de Ficchy, said the company's decision to adjust its assembly line was not based solely on Brexit, but "on the lingering uncertainty surrounding future relations between the United Kingdom. and the UK does not help companies like ours to plan for the future. "
Honda's operations in Britain are heavily dependent on its connection to the European Union; the company had already said that it would be temporarily shut down its factory in case the chaos is triggered by Brexit.
According to Patrick Keating, head of government affairs at Honda Motor Europe, about 40 percent of Honda's components at the Swindon plant come from the European Union, while 35 percent of its exports go to the region. .
Mr. Keating told a parliamentary committee in 2017 that Honda was shipping "about 2 million components per day on 350 trucks" from Europe.
Unite, a union representing workers, quickly accused Brexit. In a statement, he said "the chickens were coming home to sleep near the shadows because of the uncertainty surrounding the Brexit caused by the chaotic government of the Conservatives".
Quinn, the national leader of the organization for the automotive sector, added that "this would be a blow to the heart of manufacturing in the UK".
Stanley Reed and Stephen Castle contributed to the reports.
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