Honda to cut 800 UK jobs on falling European demand
January 11, 2013 - 1:03:23 pm
LONDON: Japanese carmaker Honda plans to cut around 800 jobs at its plant near Swindon in south west England due to falling demand for its vehicles across mainland Europe.
The company, which makes the Honda Civic at the South Marston plant near Swindon, on Friday said it would enter into formal consultation with staff over the cuts which will take place by the second quarter of 2013.
Honda employs some 3,500 staff at the South Marston plant.
Carmakers are struggling to scrap underused factories and cut surplus jobs that are fuelling losses in Europe as demand for cars in major markets like France and Germany flounders.
"Honda remains fully committed for the long-term to its UK and European manufacturing operations," Honda Motor Europe's executive vice president Ken Keir said.
"However, these conditions of sustained low industry demand require us to take difficult decisions. We are setting the business constitution at the right level to ensure long term stability and security."
Late last year U.S. carmaker Ford announced plans to cut 1,400 jobs at plants in southern England and end vehicle manufacturing in Britain.
Ford and Volvo are also planning to cut thousands of jobs in Belgium, while PSA Peugeot Citroen's has plans to cut its workforce in France.
Honda said its sales in Britain remained strong and that it had confidence for the long term for both manufacturing and sales in the country.
British new car registrations rose 5.3 percent in 2012 to 2.04 million - the highest level since 2008, the SMMT car industry body said on Monday.
Honda said it would continue to build cars and engines in Britain with the Civic Estate and the Civic Type R models due to be manufactured in Swindon from 2014. (Reuters)