Honda announces UK closure plan

Feb 20 (NHK) - Honda Motor says it plans to shut down its manufacturing plant in Swindon, southwest England, in 2021.

President Takahiro Hachigo described the decision as part of efforts to restructure global manufacturing operations. That includes a new focus on electric vehicles.

Hachigo said, "We have decided, from the point of view of competitiveness, that it will be difficult to produce electric vehicles in Europe."

Hachigo stressed that the decision is not connected to Brexit, although he admitted there are uncertainties and concerns over possible effects on parts procurement.

Honda says sluggish sales in the European market are also a factor in the decision.

The company builds 160,000 vehicles in Swindon per year, with a third of them going to the European market.

It says it will move production for those sales to other regions and will provide support to around 3,500 affected workers at the UK plant.

Honda also announced a plan to cease production at a smaller plant in Turkey in 2021.

Worries are mounting in the UK, as many people had expected large manufacturers to stay in the country even after Brexit.

Source: ANNnewsCH

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