Japanese firm to shut plant in 2022 but maintain its European HQ near Bracknell in Berkshire
Honda is planning to close its factory in
Swindon, according to reports, dealing another blow to an automotive sector already struggling with the effects of
Brexit-related uncertainty.
The Japanese carmaker, which employs 3,500 people in the
UK, is thought to be planning to shut the Swindon plant from 2022.
A source close to Honda told Sky News the carmaker would maintain its European headquarters near Bracknell, Berkshire, as well as its UK-based Formula One team, but that the factory would close.
The plan, which could be unveiled this week, comes with no sign of a Brexit deal in place just weeks ahead of March 29, the scheduled date of Britain’s departure from the European Union.
Automotive firms have sounded dire warnings about the dangers of a no-deal scenario and Honda itself has said it would cost the company tens of millions of pounds.
It is expected to move production back to Japan, partly because it can guarantee tariff-free exports to the EU, Sky News said.
Earlier this month, Nissan ditched plans to build its new X-Trail SUV in Sunderland, while Ford has said it will shed 1,000 jobs as part of a wider European cost-cutting plan.
Jaguar Land Rover has cited Brexit among the factors in its own job cuts.