Honda to cut 800 UK jobs
Cuts to be initiated at Japanese carmaker’s Swindon plant
By CFOWorld.co.uk staff | CFO UK | Published 10:57, 11 January 13
Japanese carmaker Honda is to cut 800 jobs at its Swindon plant, it was announced on Friday.
The carmaker said “weakening demand across Europe” was the primary reason behind the stated cuts. The announcement marks the first instance of Honda having reduced its workforce since it began making cars in the UK in 1992.
In a statement, the company said, "Sustained conditions of low demand in European markets make it necessary to realign Honda's business structure."
A spokesperson told CFOWorld that a 90-day consultation period had begun and that the Japanese carmaker hopes to avoid compulsory redundancies. Honda’s Swindon plant produces its Civic, Jazz and CR-V models and currently employs 3,500 people.
However, the spokesperson reiterated Honda’s commitment to UK manufacturing. According to published data, the company built 97,000 cars in 2011 and 166,000 cars in 2012 at the Swindon plant versus a possible plant capacity of 250,000.
Earlier this week, figures published by the Society of Motor Manufacturers and Traders (SMMT) indicated that UK new car registrations rose 5.3 percent in 2012 to 2,044,609 cars; the highest figure since 2008.
SMMT told CFOWorld that of these 54,208 Hondas were registered in the UK last year; an increase of 7.2 percent from 2011.
Share:Facebook Twitter Google Plus Stumble Upon Reddit Share This Email this article
Vince Cable moots women-only shortlists just ahead of international women’s daymore ..
The board is yet to accept his resignationmore ..
It emerged over the weekend that CEO Euan Sutherland was in line to receive a £3.66m pay packagemore ..
Tensions between the CEO and CFO are growing as the supermarket's sales suffer, Sky News reportedmore ..
There are so many established truths it can seem heretical to challenge themmore ..
With the recovery taking firmer root, stress should be subsiding, but the reality doesn't always match upmore ..