EMCC European Monitoring Centre on Change

Honda

Company/Organisation:
Honda

Geographic Location

Country: World
Location of affected unit(s): UK, Turkey

Company

Sector: Manufacturing
Manufacture of transport equipment
29.10 - Manufacture of motor vehicles
Number Employed: 4600

Employment Effects

Announcement Date: 19-02-2019
Planned Job Reductions min: 4600
Planned Job Reductions max: 4600
Type of Restructuring: Closure
Employment Effect Start: 01-11-2019
Foreseen End Date: 31-12-2021

Additional Information

The Japaneese car manufacturer Honda has announced a reorganisation that will lead to close two plants, in the UK and in Turkey, by 2021. Honda will end production at its only car plant in the UK by the end of 2021, at the Swindon factory were job cuts already occured the previous years (340 job cuts in 2014, 592 in 2013, 500 in 2009), but 500 recruiments in 2011 and 700 in 2006 . The plant currently employs 3,500 people.

Honda also said it will cease production at its plant in Turkey in 2021, which will result in the loss of 1,100 jobs in that country. It can be expected that job losses (as non replacement of retired employees) will start after the information and consultation of employee representatives' process. Honda explains its need to 'boost the product lineup of electric vehicles in Europe' but that it would be 'difficult to manufacture such vehicles there due to competitiveness and other factors'. Honda said more environmentally friendly models will be manufactured in China and exported to Europe in the future.

According to Honda, the decision is not related to Brexit. Talks between management and employees already began in Swindon. Honda built 160,000 vehicles at the Swindon factory in 2018, accounting for just over 10 percent of Britain’s total output of 1.52 million cars.

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