Media playback is unsupported on your device Media caption Honda Europe boss Ian Howells says the decision was driven by big changes in the industry

Honda has confirmed it will close its Swindon car plant in 2021, with the loss of about 3,500 jobs.

The Japanese company builds 160,000 Honda Civics a year in Swindon, its only car factory in the EU.

Honda said the move was due to global changes in the car industry and the need to launch electric vehicles, and it had nothing to do with Brexit.

Business Secretary Greg Clark said the decision was "devastating" for Swindon and the UK.

A fall in demand for diesel cars and tougher emissions regulations have shaken up the car industry.

Ian Howells, senior vice-president for Honda in Europe, told the BBC: "We're seeing unprecedented change in the industry on a global scale. We have to move very swiftly to electrification of our vehicles because of demand of our customers and legislation.

"This is not a Brexit-related issue for us, it's being made on the global-related changes I've spoken about.

"We've always seen Brexit as something we'll get through, but these changes globally are something we will have to respond to. We deeply regret the impact it will have on the Swindon community."

Getty Honda in numbers 3,500total employees in Swindon 160,000 Honda Civic cars built annually at the plant

90% of production sold to the UK, Europe and US

1989start of industrial operations Source: Honda

Mr Howells said that, in the light of changes in the industry, the company had to "look very closely" at where it was putting its investment.

The company sells many more vehicles in North America, Japan and China than it does in Europe.

"It has to be in a marketplace of a size for Honda, where it makes investment worthwhile.

"The conclusion coming out of that is that that doesn't include Swindon - the relative size of the marketplace in Europe is significantly different."

Honda said it would begin consulting immediately about the proposed closure with potentially affected employees.

A union source told the BBC that Honda had sent the workforce at its Swindon factory home for the day.

Image copyright PA

Honda also announced it would stop making the Civic at its plant in Turkey in 2021. Its European HQ will continue to be located in the UK after the changes.

Earlier this month, Nissan switched plans to build its X-Trail SUV from the UK to Japan.

At that time the firm's Europe chairman, Gianluca de Ficchy, said that "the continued uncertainty around the UK's future relationship with the EU is not helping companies like ours to plan for the future".

Analysis

Dominic O'Connell, Today business presenter

Honda says the Swindon closure is not Brexit-related. Is this the unvarnished truth, or is the company simply trying to avoid a political storm?

Honda has in the past been vocal about the difficulties a disorderly Brexit would bring, and the timing of the announcement, a little more than a month before the UK leaves the European Union, is curious.

But the Honda statement makes no mention of Brexit at all, instead pointing to the greater forces that are reshaping the car industry.

Honda is not, on the world stage, a big player, being dwarfed by the likes of Toyota, Volkswagen, General Motors and Ford.

It needs to find the resources to invest in electric power plants and autonomous vehicles - a strain that has already led to its larger rivals closing plants and cutting jobs.

Honda said it needed to invest in these new frontiers and concentrate its production resources where it could be sure there would be high volumes.

Swindon, which has had one of its two production lines shut for several years and which makes only 160,000 cars a year, does not fit that future. Nor does an even smaller plant in Turkey.

Brexit issues may be lurking in the background, but Honda's real reasons for closing Swindon are about the future of the global car industry, not Britain's future relationship with Europe.

The EU and Japan recently struck a trade deal which lowers tariffs on both parties' car exports to zero.

BBC business editor Simon Jack said the trade deal means there is a dwindling rationale to base manufacturing inside the EU.

He said production at Swindon had also been in decline for some time, with the plant currently running at about half its capacity.

'Deeply disappointing'

Business Secretary Greg Clark said he would convene a taskforce with local MPs, civic and business leaders, as well as trade union representatives, to help Honda workers get new skilled jobs.

"The automotive industry is undergoing a rapid transition to new technology," he said.

"The UK is one of the leaders in the development of these technologies and so it is deeply disappointing that this decision has been taken now."

Image caption Alan Tomala from Unite said the scale of job losses was "enormous"

'Betrayed': The reaction from Swindon

Unite union official Alan Tomala said employees at the Swindon factory felt "betrayed" by the closure announcement.

"They feel that the company owes them a little more than hearing the news in the media.

"I left work yesterday to 57 missed calls and around 130 emails, and not one from Honda. It surprises me and I'm angered by it."

Outside the factory gates, employee Chris, whose son also works at the plant, told the BBC he was "extremely disappointed".

"I've been here 19 years and it's devastating for all involved," he said.

"You've only got to look across the road at the large warehouses here too, I don't know what the jobs will be replaced with."

Local employment agencies have begun setting up meetings to prepare employees.

Kath Curr, managing director of C&D Recruitment in Swindon, said the closure was "devastating for the town as a whole", but Honda workers' skills were "completely transferrable" .

In a joint statement, Adam Marshall, director general of the British Chambers of Commerce, Phil Smith, chief executive of Business West, and Paul Britton, chief executive of Thames Valley Chamber of Commerce, said the planned closure of the Swindon plant would have a major impact, not only on Honda staff but also on the company's supply chain.

"Given the size of the operation, there will be a wide and diverse network of regional suppliers that will now be hugely concerned about their future business prospects.

"Employers, government and local authorities must do all they can to deliver tangible assistance and guidance for the people and communities that will be affected by an announcement of this scale," they added.</s>Honda Motor says it will close its car factory in western England's Swindon in 2021, with loss of 3,500 jobs

TOKYO (AP) — Honda Motor says it will close its car factory in western England's Swindon in 2021, with loss of 3,500 jobs.</s>TOKYO (AP) — Honda Motor says it will close its car factory in western England's Swindon in 2021, with loss of 3,500 jobs.</s>Honda today confirmed it is shutting its Swindon factory with the loss of 3,500 jobs, less than six months after bosses pledged support for the plant.

The Japanese firm said it proposed to close the vehicle manufacturing plant - which makes 150,000 cars a year - at the end of the current model's production lifecycle.

It comes one day after workers at the Wiltshire factory reacted angrily to the move at a time of turmoil for UK car manufacturing and fears over the impact of Brexit.

Some workers only found out about the announcement via Twitter, while others said they were 'pretty hacked off' and criticised a lack of communication from bosses.

Some residents in Swindon blamed Brexit for the closure, but Honda Europe senior vice president Ian Howells insisted: 'This is not a Brexit related issue for us.'

Mr Howells told BBC Radio 4's Today programme this morning: 'These other changes which are now coming at us globally we have to now respond to.'

The employment losses are not expected until 2021, but Business Secretary Greg Clark admitted the closure was a 'devastating decision for Swindon and the UK'.

He said: 'This news is a particularly bitter blow to the thousands of skilled and dedicated staff who work at the factory, their families and all of those employed in the supply chain.

'I will convene a taskforce in Swindon with local MPs, civic and business leaders as well as trade union representatives to ensure that the skills and expertise of the workforce is retained, and these highly valued employees move into new skilled employment.

'The automotive industry is undergoing a rapid transition to new technology. The UK is one of the leaders in the development of these technologies and so it is deeply disappointing that this decision has been taken now.'

Honda said under the proposed restructure, the current role of its UK manufacturing business (HUM) as a global manufacturing hub may no longer be viable.

One worker told the Daily Mirror yesterday: 'I did not have a clue until I saw a text from a friend who said he's seen it on Twitter. We have heard nothing from management. It's disgusting.'

Honda insisted its European HQ will continue to be located in the UK.

A spokesman said: 'This proposal comes as Honda accelerates its commitment to electrified cars, in response to the unprecedented changes in the global automotive industry.

'The significant challenges of electrification will see Honda revise its global manufacturing operations, and focus activity in regions where it expects to have high production volumes.'

There was no mention of Brexit by Honda. Consultation with the Unite union will begin today, and Honda said it will be working closely with its workforce over the months ahead.

Katsushi Inoue, Honda's chief officer for European regional operations and president, Honda Motor Europe, said: 'In light of the unprecedented changes that are affecting our industry, it is vital that we accelerate our electrification strategy and restructure our global operations accordingly.

'As a result, we have had to take this difficult decision to consult our workforce on how we might prepare our manufacturing network for the future. This has not been taken lightly and we deeply regret how unsettling today's announcement will be for our people.'

HUM director Jason Smith said: 'We understand the impact this proposal will have on our associates, wider supplier base and the local community. We are committed to supporting associates to help them through this difficult time.'

Staff in the Wiltshire town - which voted 55 per cent in favour of Brexit in the 2016 referendum - said they were angry about the development. One worker, who has been at the plant for 24 years, said he blamed the closure on Brexit.

The Remain voter said: 'Perfectly viable car plant operating for 30 years, no problem at all - as soon as Brexit comes along the plant needs investment.

Honda's decision to close its Swindon plant is the latest blow to the UK's car manufacturing industry. The development is highly unwelcome for those who rely on the plant for jobs and for those with high hopes for British manufacturing after Brexit. The car industry has been warning for years about the impact of leaving the European Union - particularly of a no-deal scenario - being added to issues including the slump in diesel sales. A fortnight earlier, Nissan told workers its next-generation X-Trail would be made in Japan and not Sunderland as planned. It came despite the Government offering the manufacturer a so-called sweetheart deal of up to £80 million in support to protect the firm from higher post-Brexit trade tariffs. The Society of Motor Manufacturers and Traders (SMMT) had warned the industry was on 'red alert', with figures suggesting car production had slumped by almost a 10th last year. In 2018, just over 1.5 million cars were built in UK factories, a 9.1 per cent slump on the previous year and the lowest in over five years. Demand for diesel cars is drastically down, with a decline by 22 per cent to 561,000 last year. The SMMT said investment had effectively 'stalled', having halved in 2018 while firms delayed decisions until the UK's trading arrangements became clearer. Ford is also seeking up to 400 voluntary redundancies at its Bridgend engine plant and Land Rover is to shrink its workforce by 4,500, with most of those cuts in the UK. Meanwhile, Porsche began asking buyers placing orders to sign contracts containing a clause stating they would be prepared to cover the cost of a potential 10 per cent tariff. Unite's automotive sector officer Des Quinn said the closure would be a 'shattering body blow' for UK manufacturing. Professor Matthias Holweg, an automotive industry expert at Oxford University, said fears of the high tariffs that would accompany a no-deal departure were 'dangling Damocles' sword' over the manufacturers.

'People like Justin Tomlinson, our MP, campaigned for this Brexit. He wanted Brexit - he gets to carry the can. If he's not unseated by a massive majority at the next election then this town gets what it deserves.'

Asked how he felt about the news, the man replied: 'Pretty hacked off, to be fair.'

Another man leaving the site said staff had not been warned about the announcement. He said: 'Devastated. That's all I can say.'

Labour leader Jeremy Corbyn said it is a 'huge blow' to workers and the wider community, adding: 'The Government's disastrous handling of Brexit is letting people down across the country.'

Alan Tomala, regional officer for the Unite union, and a former employee at the plant between 1995 and 2007, said workers were 'angry, dismayed and worried'.

He added: 'The usual formula is one job in the plant equates to four in the supply chain and the local economy. If closure is confirmed, it will rip the heart out of this area.'

Mr Tomala said the union represented more than 1,200 workers at the plant, and they had not been told if the reports were correct.

'For employees, our members and the wider workforce, both in the plant and in the supply chain, to hear about this through the media I think is disrespectful and disgraceful,' Mr Tomala said. 'The workforce in there deserve better than that.'

The company employs about 3,500 people at the Swindon plant, building around 160,000 Civics a year, more than 90 per cent of which are exported to Europe and the US.

The news comes a fortnight after Nissan told workers its next-generation X-Trail would be made in Japan and not Sunderland, as planned, despite the Government's so-called sweetheart deal of up to £80 million to protect the firm from higher post-Brexit trade tariffs.

Speaking in September, Ian Howells, senior vice-president of Honda Europe, said the company remained 'right behind' its plant in Swindon and was not considering moving out of the UK after Brexit.

Honda was the first major Japanese car company to get involved in large-scale manufacturing in the UK when it did a deal with British Leyland in 1980 to produce Honda-based models in BL factories. Work began on its plant in Swindon in 1985.

Honda's decision to shut down its Swindon plant shows the whole car industry has stalled, writes RUTH SUTHERLAND - and No Deal fears aren't helping

By RUTH SUTHERLAND FOR THE DAILY MAIL

Honda's decision to shut down its plant in Swindon after 30 years as a major local employer may not be directly motivated by Brexit but by wider problems in global car manufacturing.

However, yesterday's move by the Japanese carmaker could hardly have come at a worse time.

No one in the industry doubts that uncertainty over Brexit is having a chilling effect on production. Fears surrounding our departure helped to halve fresh investment in the sector last year, according to the Society of Motor Manufacturers and Traders.

Overseas investors such as Honda have, in the past three decades, rebuilt the British car industry after it was driven to the brink of annihilation in the 1970s by rabid trade union activity. Now they are in flight.

Nissan is cancelling plans to build its new X-Trail SUV at its Sunderland factory. US giant Ford, which employs 13,000 workers in Britain, describes the potential consequences of No Deal as 'catastrophic', while the boss of Jaguar Land Rover, which is cutting UK jobs, has issued a string of dire warnings.

Brexiteers will, of course, accuse these firms of crying wolf. Maybe – but that doesn't mean there are no wolves out there. And it is a tragedy that the very companies which helped to bring about a remarkable renaissance in the British car industry have become the collateral damage in the chaos of our impending departure from the EU.

It is yet one more problem to contend with in a troubled industry that faces plummeting demand for diesel cars, a slump in the vast Chinese market, and fears that Donald Trump may impose punishing tariffs on vehicles imported into the US.

In Germany, a country synonymous with the production of sleek, super-reliable driving machines sold worldwide, the decline in the auto industry is actually stalling the economy.

The industry is also dealing with the lifestyle choices of the Uber generation: city-dwelling, environmentally-conscious young people who are less fixated on car ownership than their parents were.

So a state of emergency would prevail even without Brexit, and the threat of No Deal makes us an even less attractive place to invest in troubled times.</s>Honda today confirmed it is shutting its Swindon factory with the loss of 3,500 jobs, less than six months after bosses pledged support for the plant.

The Japanese firm said it proposed to close the vehicle manufacturing plant - which makes 150,000 cars a year - at the end of the current model's production lifecycle.

It comes one day after workers at the Wiltshire factory reacted angrily to the move at a time of turmoil for UK car manufacturing and fears over the impact of Brexit.

Some workers only found out about the announcement via Twitter, while others said they were 'pretty hacked off' and criticised a lack of communication from bosses.

The employment losses are not expected until 2021, but Business Secretary Greg Clark admitted the closure was a 'devastating decision for Swindon and the UK'.

He said: 'This news is a particularly bitter blow to the thousands of skilled and dedicated staff who work at the factory, their families and all of those employed in the supply chain.

'I will convene a taskforce in Swindon with local MPs, civic and business leaders as well as trade union representatives to ensure that the skills and expertise of the workforce is retained, and these highly valued employees move into new skilled employment.

'The automotive industry is undergoing a rapid transition to new technology. The UK is one of the leaders in the development of these technologies and so it is deeply disappointing that this decision has been taken now.'

Honda said under the proposed restructure, the current role of its UK manufacturing business (HUM) as a global manufacturing hub may no longer be viable.

One worker told the Daily Mirror yesterday: 'I did not have a clue until I saw a text from a friend who said he's seen it on Twitter. We have heard nothing from management. It's disgusting.'

A Honda spokesman said: 'This proposal comes as Honda accelerates its commitment to electrified cars, in response to the unprecedented changes in the global automotive industry.

'The significant challenges of electrification will see Honda revise its global manufacturing operations, and focus activity in regions where it expects to have high production volumes.'

There was no mention of Brexit by Honda. Consultation with the Unite union will begin today, and Honda said it will be working closely with its workforce over the months ahead.

Katsushi Inoue, Honda's chief officer for European regional operations and president, Honda Motor Europe, said: 'In light of the unprecedented changes that are affecting our industry, it is vital that we accelerate our electrification strategy and restructure our global operations accordingly.

'As a result, we have had to take this difficult decision to consult our workforce on how we might prepare our manufacturing network for the future. This has not been taken lightly and we deeply regret how unsettling today's announcement will be for our people.'

HUM director Jason Smith said: 'We understand the impact this proposal will have on our associates, wider supplier base and the local community. We are committed to supporting associates to help them through this difficult time.'

Staff in the Wiltshire town - which voted 55 per cent in favour of Brexit in the 2016 referendum - said they were angry about the development. One worker, who has been at the plant for 24 years, said he blamed the closure on Brexit.

The Remain voter said: 'Perfectly viable car plant operating for 30 years, no problem at all - as soon as Brexit comes along the plant needs investment.

'People like Justin Tomlinson, our MP, campaigned for this Brexit. He wanted Brexit - he gets to carry the can. If he's not unseated by a massive majority at the next election then this town gets what it deserves.'

Asked how he felt about the news, the man replied: 'Pretty hacked off, to be fair.'

Another man leaving the site said staff had not been warned about the announcement. He said: 'Devastated. That's all I can say.'

Labour leader Jeremy Corbyn said it is a 'huge blow' to workers and the wider community, adding: 'The Government's disastrous handling of Brexit is letting people down across the country.'

Alan Tomala, regional officer for the Unite union, and a former employee at the plant between 1995 and 2007, said workers were 'angry, dismayed and worried'.

'If the speculation is to be confirmed, 3,500 jobs are at risk,' Mr Tomala said.

'The usual formula is one job in the plant equates to four in the supply chain and the local economy. If closure is confirmed, it will rip the heart out of this area.'

He said the union represented more than 1,200 workers at the plant, and they had not been told if the reports were correct.

'For employees, our members and the wider workforce, both in the plant and in the supply chain, to hear about this through the media I think is disrespectful and disgraceful,' Mr Tomala said. 'The workforce in there deserve better than that.'

The company employs about 3,500 people at the Swindon plant, building around 160,000 Civics a year, more than 90 per cent of which are exported to Europe and the US.

The news comes a fortnight after Nissan told workers its next-generation X-Trail would be made in Japan and not Sunderland, as planned, despite the Government's so-called sweetheart deal of up to £80 million to protect the firm from higher post-Brexit trade tariffs.

Speaking in September, Ian Howells, senior vice-president of Honda Europe, said the company remained 'right behind' its plant in Swindon and was not considering moving out of the UK after Brexit.

Honda was the first major Japanese car company to get involved in large-scale manufacturing in the UK when it did a deal with British Leyland in 1980 to produce Honda-based models in BL factories. Work began on its plant in Swindon in 1985.

Honda's decision to shut down its Swindon plant shows the whole car industry has stalled, writes RUTH SUTHERLAND - and No Deal fears aren't helping

By RUTH SUTHERLAND FOR THE DAILY MAIL

Honda's decision to shut down its plant in Swindon after 30 years as a major local employer may not be directly motivated by Brexit but by wider problems in global car manufacturing.

However, yesterday's move by the Japanese carmaker could hardly have come at a worse time.

No one in the industry doubts that uncertainty over Brexit is having a chilling effect on production. Fears surrounding our departure helped to halve fresh investment in the sector last year, according to the Society of Motor Manufacturers and Traders.

Overseas investors such as Honda have, in the past three decades, rebuilt the British car industry after it was driven to the brink of annihilation in the 1970s by rabid trade union activity. Now they are in flight.

Nissan is cancelling plans to build its new X-Trail SUV at its Sunderland factory. US giant Ford, which employs 13,000 workers in Britain, describes the potential consequences of No Deal as 'catastrophic', while the boss of Jaguar Land Rover, which is cutting UK jobs, has issued a string of dire warnings.

Brexiteers will, of course, accuse these firms of crying wolf. Maybe – but that doesn't mean there are no wolves out there. And it is a tragedy that the very companies which helped to bring about a remarkable renaissance in the British car industry have become the collateral damage in the chaos of our impending departure from the EU.

It is yet one more problem to contend with in a troubled industry that faces plummeting demand for diesel cars, a slump in the vast Chinese market, and fears that Donald Trump may impose punishing tariffs on vehicles imported into the US.

In Germany, a country synonymous with the production of sleek, super-reliable driving machines sold worldwide, the decline in the auto industry is actually stalling the economy.

The industry is also dealing with the lifestyle choices of the Uber generation: city-dwelling, environmentally-conscious young people who are less fixated on car ownership than their parents were.

So a state of emergency would prevail even without Brexit, and the threat of No Deal makes us an even less attractive place to invest in troubled times.</s>TOKYO — Honda Motor says it will close its car factory in western England’s Swindon in 2021, with loss of 3,500 jobs.

Copyright 2019 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.</s>Car giant Honda has confirmed plans to shut its factory in Swindon in 2021 with the loss of 3,500 jobs.

The Japanese firm told workers it proposed to close the vehicle manufacturing plant at the end of the current model’s production lifecycle.

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

“The significant challenges of electrification will see Honda revise its global manufacturing operations, and focus activity in regions where it expects to have high production volumes.”

Honda said under the proposed restructure, the current role of its UK manufacturing business (HUM) as a global manufacturing hub may no longer be viable.

There was no mention of Brexit in Honda’s statement.

Consultation with the Unite union will begin today, and Honda said it will be working closely with its workforce over the months ahead.

Katsushi Inoue, Honda’s chief officer for European regional operations and president, Honda Motor Europe, said: “In light of the unprecedented changes that are affecting our industry, it is vital that we accelerate our electrification strategy and restructure our global operations accordingly.

“As a result, we have had to take this difficult decision to consult our workforce on how we might prepare our manufacturing network for the future. This has not been taken lightly and we deeply regret how unsettling today’s announcement will be for our people.”

HUM director Jason Smith said: “We understand the impact this proposal will have on our associates, wider supplier base and the local community. We are committed to supporting associates to help them through this difficult time.”

Business Secretary Greg Clark said: “Honda have announced, as part of a global restructuring, plans to close their Swindon plant in 2021; and instead manufacture and export the new Civic model into Europe from Japan. As Honda have said, this is a commercial decision based on unprecedented changes in the global market. Regardless, this is a devastating decision for Swindon and the UK.

“This news is a particularly bitter blow to the thousands of skilled and dedicated staff who work at the factory, their families and all of those employed in the supply chain.

“I will convene a taskforce in Swindon with local MPs, civic and business leaders as well as trade union representatives to ensure that the skills and expertise of the workforce is retained, and these highly valued employees move into new skilled employment.

“The automotive industry is undergoing a rapid transition to new technology. The UK is one of the leaders in the development of these technologies and so it is deeply disappointing that this decision has been taken now.”</s>Honda has announced it is to close its Swindon car plant in 2021, leading to the loss of around 3,500 jobs, and threatening many more throughout the supply chain.

The move means Honda has joined Jaguar Land Rover and Nissan in a steadily increasing pre-Brexit exodus.

The plant produced over 160,000 vehicles in 2018, of which 90 per cent were exported to the EU.

Katsushi Inoue, Chief Officer for European Regional Operation for Honda, said: “In light of the unprecedented changes that are affecting our industry, it is vital that we accelerate our electrification strategy and restructure our global operations accordingly.”

“As a result, we have taken this difficult decision to consult our workforce on how we might prepare our manufacturing network for the future. This has not been taken lightly and we deeply regret how unsettling today’s announcement will be for our people.”

Speaking to the BBC, Senior Vice-President for Honda in Europe Ian Howells said: “We’re seeing unprecedented change in the industry on a global scale. We have to move very swiftly to electrification of our vehicles because of demand of our customers and legislation.”

“This is not a Brexit-related issue for is, it’s being made on the global-related changes I’ve spoken about. We’ve always seen Brexit as something we’ll get through, but these changes globally are something we will have to respond to. We deeply regret the impact it will have on the Swindon community.”

Despite Honda’s insistence that the closure is not as a result of Brexit, many have seen the continued uncertainty around it as a key reason for it.

Labour MP Rachel Reeves, Chair of the Business Select Committee, said: “The PM needs to rule out no deal immediately and keep us in the single market and customs union rather than risk further fatal damage to our car industry.”

“Japan and the EU have a free-trade agreement, guaranteeing tariff free access. It would be an act of folly to toss that away, along with friction free access to the EU market, in the forlorn hope that we could negotiate a better deal.”

Honda has also previously voiced concern around the impact of a no-deal Brexit on both its supply chain and cost to the company.

The decision will threaten thousands of jobs across the supply chain, thanks to the “just-in-time” manufacturing process.

Honda estimated last year that every 15 minutes of customs delay would cost it up to £850,000 a year.

Speaking in 2017, Patrick Keating, Honda’s Government Affairs Manager, said: “Outside of the customs union, there is no such thing as a frictionless border. I wouldn’t say that the just-in-time manufacturing model wouldn’t work, but it would certainly be very challenging.”

In reaction to the closure, Des Quinn, Unite Automotive Sector National Officer, said: “The car industry in the UK over the last two decades has been the jewel in the crown for the manufacturing sector, and now it has been brought low by the chaotic Brexit uncertainty created by the rigid approach adopted by Theresa May.”

“We are seeking urgent clarification from Honda on the implications of these serious reports. The 3,500-strong workforce do skilled, well-paid jobs that the UK can ill-afford to loss. If the government had advance warning of this dreadful news and did not alert the unions, this is an appalling and cavalier attitude by ministers.”</s>A new car transporter leaves a Honda manufacturing plant in Swindon, western England. The Japanese carmaker is set to announce the closure of its Swindon car plant putting 3,500 jobs at risk, Sky News reported on Monday.

[LONDON] Japanese carmaker Honda is set to announce the closure of its Swindon car plant putting 3,500 jobs at risk, Sky News reported on Monday.

Sky News said that the announcement by Honda could come on Tuesday, and that the plant was scheduled to close in 2022.

A spokesman for Honda was not immediately available to comment on the report.

"That's speculation so we wouldn't comment on that," a spokeswoman for Britain's business ministry said.</s>LONDON (Reuters) - Japanese car maker Honda is set to announce it's closing its only British car plant in 2022 with the loss of 3,500 jobs, a lawmaker told Reuters, in the latest blow to the UK car industry as Brexit approaches.

A closure of Honda's Swindon factory in southern England would be its second plant shuttering in 2022. The automaker said more than a year ago it will close one of its Japan plants in 2022, in an effort to consolidate production as it focuses on new vehicle technologies.

Honda built over 160,000 vehicles at Swindon, where it makes the hatchback version of its popular Civic model, accounting for a little more than 10 percent of Britain's total output of 1.52 million cars.

But it has struggled in Europe in recent years, and the industry faces a number of challenges including declining diesel vehicle demand and tougher regulations alongside the uncertainty over Britain's departure from the European Union, due next month.

Justin Tomlinson, a Conservative lawmaker for Swindon who voted for Brexit in 2016, said he had met with the business minister and representatives from Honda who had confirmed the plans.

"They were due to make a statement tomorrow morning, it's obviously broken early," Tomlinson, lawmaker for North Swindon, told Reuters.

"This is not Brexit-related. It is a reflection of the global market. They are seeking to consolidate production in Japan."

Honda said it would not be providing any comment on the "speculation".

"We take our responsibilities to our associates very seriously and will always communicate any significant news with them first," the firm said.

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.

Like many of its global rivals, Honda is trying to streamline its operations as it invests heavily to develop electric vehicles and self-driving cars, transforming itself from simply a manufacturer of cars into a mobility company.

Japan has repeatedly warned it could pull investments in Britain, which it had seen as a gateway into Europe, if London does not secure a Brexit deal favorable for trade.

The recently agreed EU-Japan trade agreement means tariffs on cars from Japan to the continent will be eliminated, while Britain is struggling to make progress on talks over post-Brexit trade relations with Tokyo.

Honda's announcement would come just over two weeks after bigger Japanese car maker Nissan canceled plans to build its X-Trail sport utility vehicle in Britain.

In January, Britain's biggest automaker Jaguar Land Rover said it would cut 10 percent of its workforce, mainly at home, due to sluggish sales to China and a slump in European diesel demand.

"The car industry in the UK over the last two decades has been the jewel in the crown for the manufacturing sector – and now it has been brought low by the chaotic Brexit uncertainty," said Des Quinn, national officer for the automotive sector at Unite, Britain's biggest trade union.

Honda said last month it would shut its British operations for six days in April to help counter any border disruption from Brexit. It was also preparing to front-load some production at its plant to ship overseas or build up inventories.

Nissan, Honda and a third Japanese car maker, Toyota Motor Corp, together account for roughly half of the cars built in Britain.

Honda, which has been building more cars for sale outside of Europe in recent years, said earlier this month its production volumes at Swindon would be reduced to 570 cars per day and that it would make job cuts.

"This reduction in volume will not have any impact on our permanent resource levels, and is in line with our current production plans," the company said.
Honda confirms that it will be closing its car plant in Swindon, South West England, because of decreased demand for diesel cars and tougher emissions regulations. The closure in 2021 will result in the loss of about 3,500 jobs.