Honda Motors announced in late Feb that it is going to shut down its Great Britain operations by 2021. The Swindon automobile manufacturing constitute is Honda’s exclusively factory inward Europe in addition to produces 150,000 Honda Civics, the company’second flagship product.
The declaration is a major blow for the due south W every bit the Swindon manufactory direct employs 3,500 people and has been a major buttress for regional as well as national industry since its establishment inwards 1989. The word of Honda moving production elsewhere likewise comes at a fourth dimension of a spate of other motorcar manufacturers moving operations overseas.
Changing Car Industry In The United Kingdom
Over recent years, the United Kingdom automobile industry has taken a series of major hits, including Nissan X-trail ceasing product inwards Sunderland, Jaguar Land Rover cutting iv,500 jobs, Ford axing G jobs inwards Bridgend, too task cuts at Vauxhall’s Ellesmere port. Honda is straight off the latest dent in the Britain auto industry.
Despite this bruising, in that location are flowers inwards the desert for U.K. auto manufacturing: mainland China’sec Geely is financing Lotus to create a land-of-the-fine art factory at its HQ inward Norfolk; Aston Martin will start production in South Wales by 2020; and production of the Mini in Oxford rose concluding year. However, these are small-scale gains subsequently the larger losses of Nissan too Honda.
Why Are Car Manufacturers Moving?
A slump in ask for diesel fuel vehicles, tougher emissions regulations together with a slump inwards People’s Republic of China’second consumption of foreign cars are all to blame. Additionally, automobile manufacturers are continuing to transition to electric vehicles, resulting in a rewiring of supply chains.
A senior vice-president for Honda inward Europe told the BBC that Honda is seeing prodigious changes inward the auto manufacture across the globe, farther stating that Honda needed to move swiftly to electrify its vehicles caused past necessitate together with legislation.
Lastly, the motorcar manufacture is incredibly nervous near the prospects of a no-bargain Brexit. Japan’sec authorities has repeatedly stated a no-bargain Brexit would effect in Japanese banks together with automobile manufacturing moving elsewhere. However, it is unlikely that Brexit is the sole constituent: rarely does a large companionship accept drastic action over 1 job.