Photo: Honda
As the official date for the United Kingdom’s withdrawal from the European Union approaches, there seems to be no consensus on the manner of the country’s departure. This ongoing uncertainty and the looming no-deal exit is forcing companies across industries to come up with contingency plans for a disastrous future.
The scenario of a no-deal Brexit is the worst thing that can happen in one of Europe’s most lucrative auto markets. Already the Society of Motor Manufacturers and Traders (SMMT) warned of dire consequences for a great deal of the 186,000 people working in the sector.
Scared by the prospects losing money after Britain leaving the EU through the back door, carmakers operating in the country have already taken steps to preserve their businesses.
The most recent are Jaguar Land Rover, who said it will be halting production for a week in April, expecting disruptions caused by the March 29 exit, and Porsche, who warned customers waiting to take delivery of their cars after that date to expect a possible increase in price by 10 percent, due to border tariffs.
And now Honda. Initially believed to somehow keep its operations in the country, the carmaker is reportedly now getting ready to close up shop in Swindon, where it employs 3,500 people.
According to Sky News, the Japanese are to make an announcement into the matter as soon as Tuesday, eyeing the year 2022 for cease of operations. Honda is likely to keep its headquarters in Bracknell, Berkshire.
Opened in 1992, the facility has been one of the main European manufacturing hubs for the carmaker. The Civic is the most prominent model being assembled there, alongside gasoline and diesel engines. Rumor is production will be moved back to Japan, after the country entered the world’s largest free trade zone with the EU at the beginning of February.
Should this report be true, it comes to contradict the statements made last year by the carmaker’s executives.
Scared by the prospects losing money after Britain leaving the EU through the back door, carmakers operating in the country have already taken steps to preserve their businesses.
The most recent are Jaguar Land Rover, who said it will be halting production for a week in April, expecting disruptions caused by the March 29 exit, and Porsche, who warned customers waiting to take delivery of their cars after that date to expect a possible increase in price by 10 percent, due to border tariffs.
And now Honda. Initially believed to somehow keep its operations in the country, the carmaker is reportedly now getting ready to close up shop in Swindon, where it employs 3,500 people.
According to Sky News, the Japanese are to make an announcement into the matter as soon as Tuesday, eyeing the year 2022 for cease of operations. Honda is likely to keep its headquarters in Bracknell, Berkshire.
Opened in 1992, the facility has been one of the main European manufacturing hubs for the carmaker. The Civic is the most prominent model being assembled there, alongside gasoline and diesel engines. Rumor is production will be moved back to Japan, after the country entered the world’s largest free trade zone with the EU at the beginning of February.
Should this report be true, it comes to contradict the statements made last year by the carmaker’s executives.
Google News