Sunday, 22 September, 2019


Honda closure 'disastrous' for Merthyr's Kasai plant

A sign is seen at the Honda assembly plant near Swindon southern England Honda closure 'disastrous' for Merthyr's Kasai plant
Conrad Doyle | 19 February, 2019, 07:23

According to the vehicle manufacturer's website, the Swindon factory employs thousands of employees.

In its time, the factories here produced such machines as the Miles Master, the Short Stirling and the Spitfire, though in more recent years those names have been replaced by the Accord, Civic and Jazz.

The source at the plant said it was awaiting official confirmation from Honda and had not been told anything.

Local Tory and Brexiteer MP Justin Tomlinson confirmed the news, insisting that the decision "is based on global trends and not Brexit as all European market production will consolidate in Japan in 2021".

United Kingdom -made products also risk being disadvantaged by a new treaty that will gradually eliminate tariffs on Japanese imports to the European Union, though Tomlinson, a pro-Brexit Tory, said the divorce wasn't a factor in Honda's move. "They are seeking to consolidate production in Japan".

"We take our responsibilities to our associates very seriously and will always communicate any significant news with them first", the firm said.

The broadcaster said that the announcement by Honda could come on Tuesday, and that the plant was scheduled to close in 2022.

In January, Britain's biggest automaker Jaguar Land Rover said it would cut 10 percent of its workforce, mainly at home, due to sluggish sales to China and a slump in European diesel demand.

Last month Honda announced plans for a six-day shutdown to prepare for any Brexit-related disruption.

Japanese carmakers Nissan, Toyota and Honda build roughly half of Britain's cars and, along with the rest of the sector, have been proponents of free and unfettered trade after Brexit, calling on politicians to provide clarity as soon as possible.

Most Civics and CR-Vs built in Swindon are exported to mainland Europe.

"This reduction in volume will not have any impact on our permanent resource levels, and is in line with our current production plans", the company said.

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