The Plant That Builds the Honda Civic Type R Is Closing

A mechanic works on a Honda engine

Honda is planning to close its plant in Swindon with the loss of more than 3,000 jobs.

A vehicle transporter at the Honda plant in Swindon, which the company is planning to close with the loss of more than 3,000 jobs.

The treaty makes it easier for Japanese automakers to localize production at home for sale in the European Union, consulting firm LMC Automotive said in a research report earlier this month.

Another Japanese auto company - Nissan (7201.T) - said this month that it wouldn't build its X-Trail SUV in the United Kingdom as previously planned.

The Honda Civic hatchback plant employs about 3,500 people plus another 3,500 from subsidiaries and supply chain partners who rely on the plant, which the automaker said will close in 2021. The possibility is consistent with the language Honda used in its Swindon closure announcement, in which the company said it plans to "focus activity in regions where it expects to have high production volumes".

"As Honda have said, this is a commercial decision based on unprecedented changes in the global market".

"It is going to have an impact on suppliers in Wales and that's the analysis we are working on", said Tim Williams from the Welsh Automotive Forum.

"It is deeply disappointing that this decision has been taken now", UK Business Secretary Greg Clark said. The company will also boost manufacturing of the Civic in North America, where 55% of the models made in the United Kingdom are now exported to. Production for Europe will consolidate in Japan in 2021, Justin Tomlinson, MP for North Swindon, said on Twitter.

In a statement, Honda said: "This proposal comes as Honda accelerates its commitment to electrified cars, in response to the unprecedented changes in the global automotive industry".

The plant closure will be one of several by automakers reassessing their presence in the United Kingdom and Europe.

From the moment whispers first started the closure was likely to happen, speculation centred around the numerous Brexit issues as the reason, but Honda has been adamant in denying this. Honda Turkiye A.S. now produces 38,000 units per year.

The decision is still a blow to the United Kingdom industry that's battling a Brexit-related slowdown, potential tariffs and supply bottlenecks after leaving the trade bloc on Mar 29. "Honda Turkiye A.Ş. will continue to hold constructive dialogue with Turkish stakeholders during this period", the Japanese carmaker said in a statement on February 19.

Honda announced in October 2017 it would stop making vehicles at its Sayama plant in Japan by 2022 as it grapples with a shrinking domestic market.

Japan has signed a trade deal with the European Union with zero tariffs on cars, while there is still no clear sign of what the UK's trade with the European Union will look like after Brexit.

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