Honda to shut down its Swindon, UK plant in 2022

19 Feb 2019

Honda Honda is set to announce plans to close its only British car plant in 2022, meaning 3,500 jobs would be lost, Reuters reports. 

The move from the Japanese car maker is the most recent hit the car industry in the UK has undergone, as the Brexit deadline swiftly approaches. 

The shutdown of Honda’s Swindon plant in the south of England would mark the second factory being shut down in 2022. Over a year ago, the Japanese conglomerate said it would close one of its local plants in 2022, to support the strengthening of production as it shifts its attention towards new vehicle technologies. 

Over 160,000 vehicles were manufactured in Swindon, particularly the hatchback version of its Civic model, comprising slightly over 10% of the UK’s total car output of 1.52 million vehicles. 

As the auto industry faces further tribulations including the demand for diesel vehicles declining and stricter regulations, along with uncertainty over Brexit as the deadline edges closer, Honda has struggled to make ends meet in Europe in recent years. 

Conservative lawmaker for Swindon Justin Tomlinson, who voted in favour of Brexit in 2016, said that he had held talks with the business minister and representatives from Honda who had confirmed the plans. 

Speaking to Reuters, Tomlinson said: “They were due to make a statement tomorrow morning, it’s obviously broken early.

“This is not Brexit-related. It is a reflection of the global market. They are seeking to consolidate production in Japan.”

When asked about the “speculation”, Honda refrained from commenting. 

The company stated: “We take out responsibilities to our associates very seriously and will always communicate any significant news with them first.”

In October 2017, Honda announced it would cease production of vehicles at its Sayama plant in Japan in 2022, as it struggles with a narrowing domestic market. 

Like many other competitors in the industry, Honda is trying to limit its operations as it looks towards investing in the development of electric vehicles and self-driving cars, shifting from being simply a car manufacturer to a mobility company.