21/11/2008

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.
News Image
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)

Related UK National News Stories
Click here for the latest headlines.

31 March 2015
Honda To Invest £200m In UK Plant
Honda has announced it is to invest £200m in its UK plant. The company has said its flagship production facility in Europe, which is located in Swindon, Wiltshire, said the plant will become a "global production hub" for the next generation Civic five-door model.
30 January 2009
Honda Shuts UK Factory For Four Months
Japanese carmaker Honda is to close its UK base for four months this evening, due to a slump in sales. Production at the motor plant in Swindon, Wiltshire, is to cease until June 1. Over 3,000 of the 4,000 employees will be affected by the closure.
05 December 2008
Honda Announces Plans To Quit Formula One
Honda has announced plans to pull out of Formula One championship events, if they cannot find a buyer by the end of the month. Staff at the motor company's plant in Brackley, Northamptonshire, has been warned they face redundancy with the news the team has been put up for sale.
20 December 2011
PM Welcomes 500 Honda Jobs
The Prime Minister has welcomed the announcement of 500 new jobs from a Japanese car manufacturer. Honda will start the mass production of the new Civic at its Swindon car plant, creating 500 new jobs to meet a forecasted production increase in 2012.