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Honda preparing to announce UK factory closure – report

The British plant has seen its fair share of troubles in the last decade, having halved its output post-GFC, but swirling doubts about trade from the USA, UK and Japan could spell its ultimate demise.


Honda looks likely to announce the closure of its plant in Swindon, UK, thanks to a combination of import tariffs in the USA, declining diesel demand, and uncertainty surrounding Brexit.

Reports from Sky News have suggested the announcement could come as soon as this afternoon Australian time, Tuesday morning in the UK.

Currently, the plant employs 3500 people, and produces more than 100,000 examples of the Civic every year. It's the only Honda factory within the European Union, although the company is expected to maintain its European HQ at Bracknell, UK, along with its Formula 1 operation.

Although uncertainty surrounding the impending Brexit has reportedly played a role, the looming spectre of import tariffs on European vehicles from the Trump administration is one of the main factors behind the impending announcement. The USA is one of the Civic's largest markets.

According to reporting from Autocara new deal between the European Union and Japan is also a significant factor. Tariffs on Japanese cars being imported to Europe will be phased out this year, limiting the cost benefits of manufacturing in the UK. Honda also has a plant in Turkey, which is likely a more cost-effective source.

This isn't the first hardship Honda manufacturing has faced in the UK. Half the plant was closed after the global financial crisis in 2008, at which point the Jazz and CR-V were removed from the production schedule. At its peak, the facility pumped out more than 230,000 cars every year.

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