Honda Job Losses: 800 Swindon Staff To Go
Honda plans to cut 800 jobs at its Swindon plant because of "low demand" for its vehicles across Europe.
The surprise move - which marks the first time the Japanese carmaker has made UK redundancies - comes after the company hired 500 workers last year and invested £267m in its Swindon factory.
But Honda, which has 3,500 UK employees, said the expected increase in demand had not happened, with sales of cars in Europe, including Spain, Italy and Greece, falling by a million over the past year.
The company's European vice president Ken Keir told Sky News it was a "tough day" for its workers in Swindon.
"While the UK market is stable and there's opportunity for growth, we don't see the same opportunity in mainland Europe for growth," he said.
But Mr Keir insisted the UK "still is" the cornerstone of Honda's European operation.
"Quite categorically, we have a future at Swindon and producing cars in Europe for Europe, regardless of this decision," he said.
"We've got to realign our business with the opportunity in Europe."
The company said it would hold discussions with workers in Swindon and would seek to avoid compulsory redundancies.
Last year, a third of the 150,000 cars built at the Swindon factory were sold in the UK, with the rest exported to 26 countries, mainly in Europe.
The Jazz, Civic and CR-V Honda models are built at the plant, which has an annual capacity of 250,000.
A Department for Business, Innovation and Skills spokesman said: "This will be a bitter blow to the workforce and the local area and we will be working with local partners to minimise the impact of the job losses."
what do you think?
The obvious thing to to now is to up the anti EU stakes and destabalise European economies further and make large companies even more wary of building plant in the UK. Go to it UKIP and the Tory haters - go for Britain!
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Maybe the MPs could each buy a Honda with their 32% pay increase.
This raises concerns generally about FDI and concentrated high volume product sectors - there have been for several years reports that there is over production of vehicles in Europe yet successive governments have been complacent
two weeks in to the new year and 2800 jobs gone all ready .honda and jessops thats a good start dave init.
Lance 1370 + 800 = 2170 Thanks for demonstrating the poor educational standard of the UK
Its the petrol and Insurance running a car is so expensive and if anything goes wrong on new ones these days it costs a fortune
See buying your German/French/Italian/Spanish/ Polish built cars puts British workers out of a job .then you Tory ingrates call them unemployed scroungers.( Joe Stalin come back all is forgiven.:))))
if the build quality of British cars was not so *rap, buyers would not go abroad I always used to insist on a German built Ford the UK built models were rubbish
There are no mass production British vehicles anyway. All the plants in the UK are owned and operated by BMW, TATA, Nissan, Toyota, GM, Ford and DAF.
you missed out VW-bentley
That's because the British industrialists sold out to foreigners then all went into Banking . Banking scams far better to make money Our Governments are still convinced they will save Britain .THE KING IS NAKED HE HAS NO CLOTHES.
could also be that British built cars by leyland, rootes group etc were rubbish Poor design - poor build quality, poor management, poor workers and lost money for years before the were shut down
In the year ended 31 March 2012, Jaguar Land Rover sold a total of 305,859 units, of which 251,632 were Land Rovers and 54,227 were Jaguars. In that period 22% of sales were in Europe (excluding the United Kingdom and Russia), 19.6% in the United Kingdom, 19.0% in North America, 16.7% in China, 4.2% in Asia Pacific (excluding China) and 19.0% in the rest of the world. The biggest market is the EU - so let's pull out of the European single market then? Makes sense.
Why do you think that leaving the EU means we can't trade there? That is simply not the case. We joined the European ECONOMIC Community for reasons of trade. The referendum at that time most certainly did not give any politician a mandate to take us into a federal Europe. No-one is suggesting that we withdraw from beneficial trade agreements with Europe. If you want to be governed by unelected eurocrats then you should be calling for a referendum to form a federal European superstate. I doubt you will.
This country is becoming so insular that we're gonna have to import Scottish cars shortly.
Joy A sat nave that whines on about burns and colludon
In September Vince Cable was all over Honda when they were annoucing new jobs. were was Vince Cable today when honda was annoucing job losses No were to be seen. that tells you everything you want to know about the Business Secretary
another 800 unfortunate skivers then, who ever made that gaff should make it 801
That's because it's Japanese-people biased against Japan getting richer on our money!