Honda, the Japanese automobile manufacturer, announced to idle its British plant in Swindon for two months in February and March as part of a global production cutback that it has announced 'in response to a dramatic change in the global automobile market'. The Swindon shutdown will mean that Honda will produce 21,000 fewer vehicles at the Wiltshire plant that builds CR-V models alongside European Civics.
The plant's 4,800 employees will be laid off for the two month duration of the closure, although the company said that they will continue to receive basic pay.
Honda management alleges that company is facing problems with euro and labeled its investment an error in Swindon. Japanese automobiles giant asserted that company invest in UK as they thought that it is a part of Europe. Honda’s President Takeo Fukui shows their apprehension and said
The exchange rate of the pound against the euro is very difficult to forecast. Unless the UK joins the eurozone, we can’t add to plant in Swindon.
Honda threatened to close its UK plants. Japanese No.3 automobiles anxiety over euro is growing disappointment among Japan’s industrialists over the strong pound, now trading at multi-year highs against the dollar, the Swiss franc and other currencies.
Honda also announced on Friday that it will reduce output at one of its Japanese plant by a further 40,000 vehicles.