Honda said Tuesday it plans to close its car factory in western England in 2021, imperiling 3,500 jobs in a fresh blow to the British economy as it faces its March 29 exit from the European Union.
The Japanese automaker announced the decision at a news conference in Tokyo, where Honda's president and CEO, Takahiro Hachigo, told reporters the decision was not related to Brexit.
He said the company would begin discussions with affected workers immediately.
A car transporter leaves the Honda car plant in Swindon, western England, Monday Feb. 18, 2019. The Japanese carmaker Honda will close a car factory in western England with the potential loss of some 3,500 jobs, according to media reports Monday and confirmed by local lawmaker Justin Tomlinson. (Steve ParsonsPA via AP)
Honda makes its popular Civic model at the factory, 115 kilometers (70 miles) west of London, with an output of 150,000 cars per year. It is adjusting its manufacturing to reflect stronger demand in Asia and North America, Hachigo said.
"I very much regret this," he said, adding that "this was the best choice the circumstances."
"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," Katsushi Inoue, Honda's chief officer for European Regional Operations, said in a statement.
A car transporter leaves the Honda car plant in Swindon, western England, Monday Feb. 18, 2019. The Japanese carmaker Honda will close a car factory in western England with the potential loss of some 3,500 jobs, according to media reports Monday and confirmed by local lawmaker Justin Tomlinson. (Steve ParsonsPA via AP)
The company said it will also adjust its operations in Turkey, where it makes 38,000 Civic sedans a year. It said it would continue operating there and hold a "constructive dialogue" with local stakeholders.
British businesses are issuing increasingly urgent warnings about the damage being done by the uncertainty around Brexit. The UK has yet to seal a deal laying out the divorce terms and establishing what trade rules will apply after Brexit.