Honda UK suggests six-day shutdown after Brexit

Company - Mohit Shah - Jan 11,2019

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honda uk suggests six day shutdown after brexit

The plan for shutdown at Honda’s Swindon factory emerges on the same day when rivals Ford and Jaguar Land Rover declare job cuts in significant number.

Production at the already running plant in Swindon will come to halt for six days post Brexit. This decision has been taken so that Honda can handle problems surrounding the exporting of cars as well as importing of spare parts.

According to the Japanese car giant, the move is basically to ensure the company can adapt with "all possible outcomes caused by logistics and border issues".

Honda UK said, it would help in recuperating lost production if consignments containing parts were seized at borders.

At present, Honda manages an employee strength of 3,400 at its Swindon plant.

The senior vice-president of Honda Europe last year cautioned about the worst case scenario associated to Brexit. It was believed that Honda would be slammed with tens of millions of pounds in case no deal fits between Europe and U.K.

In October last year, the U.K wing of Honda together with Ford, Vauxhall as well as the Society of Motor Manufacturers and Traders acquiesced evidence to the concerned committee that gave a brief idea about the expected influence on Brexit over the British car sector.

Honda's proposal delivered serious warnings, indicating the company might be forced to shut facilities across UK in case no-deal Brexit happened.