Honda confirms Swindon factory closure following consultation

Already this year, Jaguar Land Rover has announced 4500 job losses, Nissan has confirmed it will no longer build the X-Trail in Sunderland and Ford has said there will be job losses at its plants.

Honda has been slow to react to electrification compared to its rivals. It launched its CR-V Hybrid last year but doesn't offer any electric models, although its Urban EV, a retro-styled electric city car, is due to go on sale late this year.

The firm’s intention is to consolidate much of its manufacturing back to its home country of Japan. This will allow it to ship to China – one of the markets where “high production volumes” are expected – fairly easily.

The deal that the Japanese government has recently struck with the European Union (EU) is likely to be another motivating factor. It means tariffs on Japanese-made cars coming into the bloc's 27 member states will be phased out from this year, reducing the financial benefit of Honda having a UK hub.

The threat of import tariffs for European-made cars from Donald Trump’s administration will also be a factor, because the US is one of the Civic's main markets.

A statement issued by the Society of Motor Manufacturers and Traders (SMMT) following the first news of the plant's closure in February read: “Today’s announcement is a huge blow to UK automotive manufacturing, and for the Honda plant’s highly skilled and productive workforce. Whilst production will continue in Swindon until 2021, giving government and industry time to help affected employees and the local supply chain which supports a further 10,000 jobs, this is, nevertheless, devastating news."

“The challenges facing Honda are not unique," SMMT chief executive Mike Hawes said. "The global automotive industry is facing fundamental changes: technological, commercial and environmental, as well as escalating trade tensions, and all manufacturers are facing difficult decisions. The UK should be at the forefront of these changes, championing its competitiveness and innovation, rather than having to focus resources on the need to avoid a catastrophic ‘no-deal’ Brexit.”