Honda Halt Production for Two Months

Car manufacturer Honda has announced it will halt production at its Swindon plant for two months, next year, due to the "dramatic change" in the global market.

The Japanese car giant also said the plant's 4,800 employees will be laid off for 50 days - the duration of the closure - although staff will receive basic pay, the company said.

Honda said it plans to make 61,000 fewer vehicles in Japan and Europe as it struggles with the slowing global demand.

It will also cut car production at Swindon by 21,000 vehicles during the period. This follows a previous decision to reduce it by 10,000 earlier this year.

Earlier this month, BMW also announced it would be shutting its Oxford factory, which produces the Mini, for four weeks to cut production amid falling sales.

A Honda spokesman said there would no redundancies at Swindon and workers would still be paid.

The company said in a statement: "Honda has announced a plan to adjust automobile production at its UK factory in Swindon for the current fiscal year in response to a dramatic change in the global automobile market.

"In addition to 32,000 units production adjustment between December 2008 and March 2009 that had previously been announced, production at Honda of the UK Manufacturing Ltd (HUM) will be further adjusted by 21,000 units.

"This will be achieved by suspending production for 29 days during the months of February and March 2009, combined with 13 non-production days previously planned in this period. Therefore HUM will stop all vehicle production in February and March 2009. There are no plans for redundancies."

The Swindon Honda plant produces the Civic and CR-V models. It is due to start production of the small car Jazz next autumn.

(JM)