Honda approves Swindon closure as rescue talks fail

Honda has told staff at its Swindon plant that there are 'no viable alternatives' to its closure following discussions among consultation groups, unions and the UK Government.

The manufacturer has previously announced plans to close the plant, which employs 3500 staff and produces the Honda Civic hatchback.

Today, staff have been told that production will end of the current model's lifecycle in 2021. It comes as the manufacturer accelerates its electrification plans and looks to move production outside of the European Union.

This forms the first stage of the collective consultion process, which will be followed by agreeing redundancy packages. Honda says it will intensify its engagement with the Swindon Task Force set up by Secretary of State Greg Clark, in order to work with the government and stakeholders to mitigate the impact on the wider community.

“It is with a heavy heart that today we confirm the closure of Honda’s factory in Swindon," said Jason Smith, director of Honda of the UK manufacturing. "We understand the impact this decision has on our associates, suppliers and the wider community. We are committed to continuing to support them throughout the next phases of the consultation process.”

Honda has spent £2.2 billion in Swindon since it opened its factory there in 1989. In 2018 it invested an additional £200 million to increase capacity for the production of the tenth-generation Civic.