THOUSANDS of families were last night facing an uncertain future, as Honda briefed managers and politicians on plans to close its Swindon plant by 2022.
MPs and councillors of all stripes branded the decision devastating news for the town. More than 3,500 jobs are expected to be lost from the South Marston factory. Plummeting diesel sales and the shift to the production of hybrid and electric cars were blamed as the main reasons behind the move.
Honda was last night remaining tight lipped over the exact number of jobs that will be lost. A statement from the Japanese company is expected this morning.
And the true number of jobs cut could be even higher. Honda could not be reached yesterday to comment on what the decision to close the plant would mean for South Marston-based Honda Logistics UK and the firm’s Stanton House Hotel.
Prime minister Theresa May was briefed on the situation yesterday and said to be deeply concerned and supportive of ministers’ plans to launch a task force charged with supporting staff facing redundancy. A similar group was launched in the wake of Honda’s decision in 2009 to cut 1,300 jobs. In 2013 the firm announced it planned to axe 800 jobs.
In a joint statement, North Swindon MP Justin Tomlinson and South Swindon’s Robert Buckland said: “With nothing yet confirmed to the workforce, we are very disappointed and surprised to hear the emerging news that Honda is preparing to close its Swindon plant in 2021.
“Honda has told us that they will be consulting with all staff and there is not expected to be any job losses or change in production until 2021.
“Our thoughts are with fellow residents and friends who work at Honda and in the local supply chain too. We will do all we can to support them as news continues to emerge.”
Yesterday, senior managers were understood to have spent much of the afternoon in a meeting with bosses discussing the job losses. Unions said they would supporting those in the firing line.
Mr Tomlinson, who last month boasted on social media that Honda remained committed to Swindon, branded the firm's move a major jolt for Swindon. Others went further, calling the decision to shift production to Japan devastating for the town.
Roger Smith, ward councillor for Stratton St Margaret and South Marston, said: “It’s just devastating for the community. I live a stone’s throw from the plant. I have friends who work at the plant, who’ve worked there for many years. It’s dreadful news for them and their families. There are many people who are indirectly employed as part of the supply chain and they’re going to be impacted.
“I remember when the Railway Works closed back in 1986. The town recovered then and I think it will recover again.”
“It’s immensely sad,” said South Marston Parish Council chairman Colin McEwen.
Kate Linnegar, Labour’s prospective parliamentary candidate for North Swindon, said: “If confirmed, this would be a bitter blow for Swindon. My deepest sympathies go to the 3,500 Honda employees and their families, as well as the hundreds of others that work in the supply chain. Their livelihoods have suddenly been plunged into jeopardy.”
Many were quick to make the link between Honda’s decision to close the plant and Brexit.
Molly Scott-Cato, Green Party MEP for the south west, said: “This is the day that will be remembered as the day project fear became Brexit reality, the day when the true scale of the social and economic costs of leaving the EU hit hard in the south west. Now that we know what Brexit means in reality they, and we all, have a right to think again.”
However, Conservative politicians denied Brexit played a part in Honda’s decision to leave Swindon. Justin Tomlinson and Robert Buckland said: “Honda have been very clear. This decision has been made because of global trends and is not related to Brexit. The factory in Turkey will also close as all European market production is being consolidated to Japan where the company is based.”
Falling sales of diesel cars and a move to build more electric or hybrid vehicles had also affected the decision. The firm produces around 150,000 cars in Swindon a year, compared to 1.9m in Japan, it is understood.
International Trade Secretary Liam Fox said the plant’s closure would be “very unfortunate” but “it’s premature to comment until we actually hear what the company have to say”.
Speaking to the BBC on a trade visit to Israel, he said: “Car production in the UK has been very strong in recent years but we have seen with the diesel emissions - some of the rules coming in around that - and that there has been a big drop in demand.
“That big drop in demand by consumers is bound to have a knock-on effect with producers.”
However, a new trade deal between Japan and the EU, which came into force on February 1, had also played a part in Honda’s decision to move from Swindon, MPs added. The deal would make it easier for the car giant to produce its vehicles in Japan and ship them to Europe.
Remainer MP Rachel Reeves, chairman of the Commons Business, Energy and Industrial Strategy Select Committee, claimed Honda’s “devastating” decision to pull out of Swindon meant government needed to keep the UK in the customs union.
“The PM now needs to rule out no deal immediately and keep us in the single market and customs union rather than risk further fatal damage to our car industry,” she said. “Japan and the EU have a free-trade agreement, guaranteeing tariff free access. It would be an act of folly to toss that away, along with friction-free access to the EU market, in the forlorn hope that we could negotiate a better deal.”
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