E-Paper
Brexit blow? Honda to shut only European plant in UK
Honda did not cite uncertainty over Brexit as the reason for the closure, but it workers believe it is the cause for the Japanese carmaker to quit England.
Workers vented their frustration at politicians squabbling over Brexit as Japanese auto major Honda on Tuesday announced the closure in 2021 of its only plant in Europe in Swindon that produces 150,000 cars per year.
Swindon, 130 km west of London, has been the home of Honda since the early 1990s, employing 3,500 workers. The news spread gloom in the car industry that has seen several manufacturers – including Tata-owned Jaguar Land Rover – either curtail operations and investment or move offices to Europe.
Honda did not cite uncertainty over Brexit as the reason for the closure, but it was widely perceived so by workers, union officials and politicians opposed to leaving the EU on March 29. According to Honda, the decision was due to “unprecedented changes in the global automotive industry”.
Katsushi Inoue, chief officer for Honda’s European operations, said; “In light of the unprecedented changes that are affecting our industry, it is vital that we accelerate our electrification strategy and restructure our global operations accordingly”.
“As a result, we have had to take this difficult decision to consult our workforce on how we might prepare our manufacturing network for the future. This has not been taken lightly and we deeply regret how unsettling today’s announcement will be for our people.”
However, Des Quinn of the Unite workers union Unite, said: “While Brexit is not mentioned by the company as a reason for the announcement, we believe that the uncertainty that the Tory government has created by its inept and rigid handling of the Brexit negotiations lurks in the background”.
“If the government had delivered a strong and stable Brexit that protected the economy and jobs, we may well have been in a very different position today…We acknowledge the global challenges that Honda has outlined in its statement, but we don’t accept that this plant, with its highly skilled and dedicated workforce, does not have a viable future”.
Greg Clarke, business secretary in the Theresa May government lobbying for greater clarity over Brexit for businesses, said: “This news is a particularly bitter blow to the thousands of skilled and dedicated staff who work at the factory, their families and all of those employed in the supply chain”.
“The automotive industry is undergoing a rapid transition to new technology. The UK is one of the leaders in the development of these technologies and so it is deeply disappointing that this decision has been taken now”.
