Honda cuts production at UK plant

Car production is to be cut at a UK Honda plant due to the economic downturn, it was announced today.

The Japanese car giant said annual manufacturing at its plant at Swindon in Wiltshire would be reduced by a further 10,000 units at the beginning of next year.

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This is over and above the 22,000-vehicle reduction announced at the end of the summer and is equivalent to 11 non-production days at Swindon where Honda makes the Civic model as well as the CR-V 4x4.

However, the company said that there would be no job cuts as a result of the reduction which will be carried out between January and March 2009.

Also, Honda still intends to start production of its Jazz model at Swindon in autumn 2009 as planned.

Having started production at Swindon in 1986, Honda employs about 5,000 staff at the Wiltshire site.

Announcing the cut-back today, Honda blamed the world economic conditions and a lack of consumer confidence for its decision to slash production.

New car sales in the UK have slumped in recent months, with even the arrival of the new 58-registration number plates failing kick-start the market in September.

Honda is the latest in a line of companies to announce production cuts.

Jaguar Land Rover has announced cut-backs at Castle Bromwich in the Midlands and Halewood on Merseyside, while Nissan is slashing production at Sunderland.

UK employees were hit this week by the announcement of job losses by car and aircraft parts company GKN.

Other car companies that have announced production cutbacks in Europe include Peugeot Citroen, Chrysler and Daimler.

UK car production actually increased in September 2009, but the Society of Motor Manufacturers and Traders has warned of tough times ahead.

The extent to which a recession can hit the motor industry is reflected in the events of the early 1990s when new car sales fell for 27 months in a row before recovering to later reach record levels.

Roger Maddison, national officer of Unite, said: "Honda is suffering the same as everybody else in the car business but they are not making lay offs, which is to be commended.

"Instead, they are holding on to skills and people for the time when the market turns up. We urge others in the sector to follow suit and take the same long term view."