Honda UK plant closure marks industry change

https://www3.nhk.or.jp/nhkworld/en/news/20210731_09/

Honda Motor has brought down the curtain on 35 years of carmaking at its plant in Swindon, southwest England. The factory stopped operations on Friday.

The closure is part of Honda's efforts to restructure its global operations.The factory's annual capacity was 150,000 units.

The move is the latest blow for the Swindon community. Auto parts-makers began leaving the area after Honda announced its closure plans in February 2019.

One company that's been hit is a Japanese affiliated logistics firm that depended on Honda for three-quarters of local sales.

However, the firm plans to stay in the area. After letting go of 20 percent of its employees, it persevered with new manufacturers in the heating equipment industry and others.

A senior manager says the company's high-level of quality control and on-time deliveries have helped it survive. But he adds they must continue to attract new customers to remain in the community.

The Honda plant's closure is being seen as a turning point for the UK automotive industry.

Car makers have announced this month that they are expanding UK production of electric vehicles.

Nissan Motor is to build an electric vehicle battery plant while Stellantis, formed by the merger of Fiat-Chrysler and Peugeot groups, will invest to a plant specializing in EVs.

Mike Hawes, Chief Executive of Society of Motor Manufacturers and Traders, said Honda's closure is deeply disappointing but suggested it was inevitable. He said automakers are shifting from gasoline vehicles to EVs.

He added the UK industry is continuing to work with Japanese carmakers to produce eco-friendly vehicles.