Please ensure Javascript is enabled for purposes of website accessibility

West Bank Town Becomes ‘Big Prison’ as Israel Fences It In

3 days ago

Trump Says He’s Willing to Let Migrant Farm Laborers Stay in US

3 days ago

US Electric Vehicle Tax Breaks Will Expire on Sept. 30

4 days ago

Eyeing Arctic Dominance, Trump Bill Earmarks $8.6 Billion for US Coast Guard Icebreakers

4 days ago

Trump’s Sweeping Tax-Cut and Spending Bill Wins Congressional Approval

4 days ago

Americans Celebrate Their Independence With Record-Breaking Travel Numbers

4 days ago

US Supreme Court to Decide Legality of Transgender School Sports Bans

4 days ago

Nvidia Set to Become the World’s Most Valuable Company in History

4 days ago

Poll: 41% in US ‘Extremely Proud’ to Be American, Near Historic Low

4 days ago
Honda to Shut Plant in Brexit-Shaken Britain
gvw_ap_news
By Associated Press
Published 6 years ago on
February 19, 2019

Share

LONDON — Japanese carmaker Honda plans to close its car factory in western England in 2021, a fresh blow to the British economy as it struggles with the uncertainty associated with leaving the European Union next month.
The company announced the decision, which will imperil 3,500 jobs and possibly many more, at a news conference in Tokyo.

“We still don’t know what sort of changes Brexit will bring at this point. We have to wait until we have a better idea about the situation.”Takahiro Hachigo, Honda’s president and CEO
Honda’s president and CEO, Takahiro Hachigo, said the decision was not related to Brexit, but was based on what made most sense for its global competitiveness in light of the need to accelerate its production of electric vehicles.
Still, experts say the uncertainty surrounding Brexit will likely have been a contributing factor in a decision like Honda’s. There is no clarity on what leaving the EU will mean. In a worst case, it could lead to heavy tariffs and border checks, raising costs and slowing deliveries.
That comes at a time when the industry is already in serious flux, with manufacturers shifting to cleaner cars, coping with more tariffs and a slowing global economy.
“We still don’t know what sort of changes Brexit will bring at this point,” said Hachigo. “We have to wait until we have a better idea about the situation.”
Honda Motor Co. makes its popular Civic model at the factory, 70 miles west of London, with an output of 150,000 cars per year. Its restructuring is aimed at adjusting its operations to reflect stronger demand in Asia and North America, Hachigo said.
The next model of Civic to be sold in Britain will be exported from Japan.

British Businesses Issue Urgent Warnings

Hachigo said the company would begin discussions with affected workers at the factory in Swindon right away.
“I very much regret this,” he said, adding that “this was the best choice under the circumstances.”
British businesses are issuing increasingly urgent warnings about the damage being done by the uncertainty surrounding Britain’s divorce from the EU. The U.K. has yet to seal a deal laying out the divorce terms and establishing what trade rules will apply after Brexit.
Many businesses fear economic chaos if there isn’t an agreement on the rules and conditions that will replace the 45 years of frictionless trade that came with being an EU member. The uncertainty has already led many firms to shift some operations abroad, stockpile goods or defer investment decisions.
Earlier this month, Japan’s Nissan announced that it would not build a new SUV at its plant in Sunderland, England, as previously planned.
L. Alan Winters, director of the U.K. Trade Policy Observatory at the University of Sussex, said that the backdrop of Brexit means that the U.K. is less able to respond to challenges in the industry.
“Honda, like all other car manufacturers, has a major problem to solve and having a chaotic government that does not seem to care about industry makes it less inclined to try to solve them here,” he said, adding that it will be difficult for Britain to face the shock. “With Brexit sucking life out of the U.K. economy, it will be much more difficult to find new activities and jobs to compensate for the losses at Honda and elsewhere.”
Beyond Brexit, the auto industry is facing strong headwinds. Ford Motor Co. is restructuring in Europe, closing a transmission plant in Bordeaux, France, dropping unprofitable model lines and separating an unspecified number of workers. General Motors said in November it would lay off 14,000 in North America and put five plants up for possible closure. Volkswagen has said it will cut jobs as it changes three plants in Germany to produce electric vehicles.

Auto Industry Is Bellwether of Economy

Economic growth is slowing, particularly in Europe, where auto sales fell 4.6 percent in January from a year ago. Car sales have also cooled in China, the world’s largest car market.

“Workers at Honda must not pay the price for the prime minister playing to the hardliners in her party and we urge Honda to sit down urgently with Unite to discuss a way forward for the plant.” — Frances O’Grady
Automakers face pressure to invest large amounts of money in new technologies such as electric and autonomous cars to meet air pollution limits in Europe and China and fend off competition from tech companies such as Uber and Waymo.
Japan and the EU have meanwhile struck a free trade deal, which makes a manufacturing presence in the EU less important. The U.K.’s decision to leave the bloc could create further uncertainty for Japanese companies in Britain.
The planned closure will hit Swindon hard. Beyond the jobs at the plant, the jobs of those who supply the plant will also be at risk, as the auto industry has proved to be a bellwether of the economy.
Local lawmakers described the news as devastating and unions pledged to fight for the jobs.
British Prime Minister Theresa May spoke by phone with the president of Honda, her office said, without discussing further details.
The head of the TUC, an umbrella organization for labor unions, put the blame squarely at May’s door, saying her refusal to rule out that Britain would not leave the EU without a deal on trade relations has put thousands of jobs in jeopardy.
“Workers at Honda must not pay the price for the prime minister playing to the hardliners in her party and we urge Honda to sit down urgently with Unite to discuss a way forward for the plant,” said Frances O’Grady.

DON'T MISS

What Are Fresno Real Estate Experts Predicting for 2025 and Beyond?

DON'T MISS

First California EV Mandates Hit Automakers This Year. Most Are Not Even Close

DON'T MISS

How Trump’s ‘Big, Beautiful Bill’ Will Make China Great Again

DON'T MISS

What’s Caitlin Clark Worth to the WNBA? A Lot More Than Her $78,066 Salary.

DON'T MISS

Trump to Sign Tax-Cut and Spending Bill in July 4 Ceremony

DON'T MISS

Madre Fire Spurs Evacuations Across 3 Counties, Grows to More Than 70,000 Acres

DON'T MISS

Clovis, Sanger, Madera, and Bass Lake Will Light the Sky With Fireworks Shows Tonight

DON'T MISS

Oil Dips Ahead of Expected OPEC+ Output Increase

DON'T MISS

613 Killed at Gaza Aid Distribution Sites, Near Humanitarian Covoys, Says UN

DON'T MISS

Fresno County Authorities Investigating Suspicious Death of Transient Man

DON'T MISS

West Bank Town Becomes ‘Big Prison’ as Israel Fences It In

DON'T MISS

Israeli Military Kills 20 in Gaza as Trump Awaits Hamas Reply to Truce Proposal

UP NEXT

West Bank Town Becomes ‘Big Prison’ as Israel Fences It In

UP NEXT

Israeli Military Kills 20 in Gaza as Trump Awaits Hamas Reply to Truce Proposal

UP NEXT

Russia Pounds Kyiv With Largest Drone Attack, Hours After Trump-Putin Call

UP NEXT

Markets’ 90-Day Tariff Pause Rollercoaster Nears an Uncertain End

UP NEXT

Fresno Crash Involving Unlicensed Teen Driver Sends Woman to Hospital

UP NEXT

Eyeing Arctic Dominance, Trump Bill Earmarks $8.6 Billion for US Coast Guard Icebreakers

UP NEXT

Colombia President Recalls Ambassador to US

UP NEXT

US-Backed 60-Day Gaza Ceasefire Envisions Gradual Return of Hostages, Official Says

UP NEXT

Americans Celebrate Their Independence With Record-Breaking Travel Numbers

UP NEXT

US Paves Way to Resume Ethane Exports to China Amid Trade Truce

Trump Calls Musk’s Formation of New Party “Ridiculous” and Confusing

14 hours ago

Fresno DUI Driver Slams Into CHP Motorcycle, Tow Truck on Highway 99

20 hours ago

Russia Downs 120 Ukrainian Drones Overnight, Defense Ministry Says

20 hours ago

Israel Sends Delegation to Qatar for Gaza Talks Ahead of Netanyahu Trip to US

20 hours ago

San Luis Obispo’s Madre Fire Grows to Nearly 80,000 Acres, 30% Contained

20 hours ago

Musk Announces Forming of ‘America Party’ in Further Break From Trump

21 hours ago

Death Toll From Texas Floods Reaches 59, Including 21 Children

21 hours ago

California’s Politics Drifts Right While New York’s Leans Left

21 hours ago

How Trump’s ‘Big, Beautiful Bill’ Will Make China Great Again

2 days ago

What’s Caitlin Clark Worth to the WNBA? A Lot More Than Her $78,066 Salary.

2 days ago

TikTok Building New Version of App Ahead of Expected US Sale, the Information Reports

TikTok is building a new version of its app for users in the United States ahead of a planned sale of the app to a group of investors, The I...

14 hours ago

A logo is displayed over a door at the U.S. headquarters of the social media company TikTok in Culver City, California, U.S. January 17, 2025. (Reuters File)
14 hours ago

TikTok Building New Version of App Ahead of Expected US Sale, the Information Reports

Boxes of aid are stacked as Gaza Humanitarian Foundation said it has commenced operations to begin distribution of aid, in Rafah, in the southern Gaza Strip, May 26, 2025. (Reuters File)
14 hours ago

Hamas Government Office Rejects US Accusation of Involvement in Gaza Aid Site Attack

A volunteer searches for flood victims after deadly flooding in Kerr County, Texas, U.S., July 6, 2025. REUTERS/Sergio Flores
14 hours ago

Death Toll From Texas Floods Reaches 78, Trump Plans Visit

Tesla CEO and X owner Elon Musk listens as US President-elect Donald Trump speaks during a meeting with House Republicans at the Hyatt Regency hotel in Washington, DC, U.S. on November 13, 2024. (Reuters File)
14 hours ago

Trump Calls Musk’s Formation of New Party “Ridiculous” and Confusing

A 22-year-old suspected DUI driver crashed into a parked CHP motorcycle and tow truck on Highway 99 near Fresno, narrowly missing an officer and bystanders, CHP said Saturday, July 5, 2025. (CHP)
20 hours ago

Fresno DUI Driver Slams Into CHP Motorcycle, Tow Truck on Highway 99

A service member of a drone unit of the 24th Separate Mechanized Brigade named after King Danylo of the Ukrainian Armed Forces controls a heavy combat drone while it flies over positions of Russian troops, amid Russia's attack on Ukraine, in Donetsk Region, Ukraine June 12, 2025. (Reuters File)
20 hours ago

Russia Downs 120 Ukrainian Drones Overnight, Defense Ministry Says

An Israeli tank maneuvers in Gaza, as seen from the Israeli side of the border, July 6, 2025. (Reuters/Amir Cohen)
20 hours ago

Israel Sends Delegation to Qatar for Gaza Talks Ahead of Netanyahu Trip to US

The Madre Fire near New Cuyama has burned nearly 80,000 acres as of Sunday, July 6, 2025, morning, prompting widespread evacuation orders and warnings across three counties. (CalFire)
20 hours ago

San Luis Obispo’s Madre Fire Grows to Nearly 80,000 Acres, 30% Contained

Help continue the work that gets you the news that matters most.

Search

Send this to a friend