Honda is cutting production at its UK factory from three shifts to two, threatening more than 300 jobs, because of slow sales across Europe.
The plant builds the outgoing, previous generation Jazz (Fit), CR-V and Civic hatchback/Tourer wagon models, plus diesel engines, primarily for Europe, but exports as far as Australia. From next year, the new Civic Type R – which made its public debut at the Geneva show earlier this month – will also be made there.
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Ian Howells, senior vice president, Honda Motor Europe, said most cars built at the plant in Swindon, Wiltshire, are exported and sales in other countries have not been as strong as in the UK.
“Over the past 12 months, we have not seen the growth we had anticipated. With no increase forecast for the next couple of years, we must scale our manufacturing activity accordingly.”
He added, however, the carmaker remained confident about the long term future of the Swindon plant which has seen a number of cutbacks and ramp-ups in recent years, mirroring the economic roller coaster that has affected European and global car sales.
“Our Swindon operation continues to be the hub for our European car manufacturing activity,” Howells insisted.
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By GlobalDataHonda said it was starting consultation on a proposal to reduce the workforce by 340 assembly line employees. As well as moving to two shifts, production would be consolidated on to one line [a move also made by rival Toyota at its Derbyshire plant following the 2007/8 global financial crisis – ed], to “improve production flexibility and efficiency”.
The cuts include 160 temporary positions at the factory which employs 3,000 people.
Honda has been manufacturing cars at Swindon since 1992; the plant began life some years earlier as a rectification/pre-delivery facility for cars made in Japan and by then-local partner Rover in England.
In January last year the Japanese company announced plans to cut around 800 jobs from its UK operations, a figure later reduced to around 550 voluntary redundancies, and 38 compulsory. The Swindon plant has the capacity to build 250,000 cars annually but only half that number is expected to come off the line this year. The plant assembled 140,094 cars in 2013, down from 165,607 units in 2012.
Tony Murphy, national officer of the Unite union, told the Western Morning News newspaper: “These job losses are a devastating blow, not just for these workers but for the thousands more across the industry whose work is dependent on the Honda plant.” He added this was an indication that economies are not turning around.
“The truth is that there is simply no pick up in the incomes of Honda’s customers, either (in the UK) or in the eurozone. People are not confident and do not have the cash to spend. That is something which must give serious cause for concern. Decent, skilled jobs are being lost and investment is being withdrawn, which is ringing alarm bells.”
