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Honda to shut UK car plant with loss of 3,500 jobs

This file photo taken on June 1, 2009 shows assembly line workers at the Honda factory in Swindon voluntarily working on the grounds surrounding the site after a four month closure. (Photo by AFP)

Japanese car maker Honda is set to announce it’s closing its only British car plant in 2022 with the loss of 3,500 jobs, a lawmaker told Reuters, in the latest blow to the UK car industry as Brexit approaches.

A closure of Honda’s Swindon factory in southern England would be its second plant shuttering in 2022.

The automaker said more than a year ago it will close one of its Japan plants in 2022, in an effort to consolidate production as it focuses on new vehicle technologies.

Honda Motor said on Tuesday it will hold a news conference at 0800 GMT.

Honda said Chief Executive Takahiro Hachigo will attend the news conference. It said the conference will address a change in operational structure.

If Honda says it is shutting the factory, it will be one of several automakers reassessing their presence in the UK and Europe.

Two weeks ago bigger Japanese rival Nissan cancelled plans to build its X-Trail sport utility vehicle in Britain.

Last month, Britain’s biggest automaker Jaguar Land Rover, and Ford Motor Co separately announced sweeping job cuts in Europe.

For Honda, declining demand for diesel vehicles, tougher emissions regulations and uncertainty over Britain’s expected departure from the European Union next month have clouded its manufacturing prospects in the region.

(Source: Reuters)


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