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
Tesco's announcement today that boss Philip Clarke is to leave proves that's no longer the casemore ..
Its financial controller of 12 years will step up to be the new group FD as Bill Tame becomes CEO of the international divisionmore ..
Andrew Higginson served as finance director at Tesco for 15 yearsmore ..
Mary Harris joins the board raising the total number of women on the board to threemore ..
Most CFOs are Baby Boomers or Generation X-ers – the difference in mindset is hugemore ..
With Pfizer's possible takeover of Astrazeneca in the spotlight we take a look at how pivotal the CFO is in such a dealmore ..