Honda sells Swindon plant to Panattoni
Japanese manufacturer will hand over the keys to US logistics specialist after more than 35 years in UK
Honda has agreed to sell its Swindon production plant to American logistics specialist Panattoni, securing the future of a facility that currently employs 3,500 people. The news comes two years after Honda – for which Swindon produces 150,000 cars, 10 per cent of the manufacturer’s annual total – announced it was selling the site amid weak sales performances in the UK and Europe. While Honda will focus its attention on higher income regions, Panattoni is to make a plus-£700-million investment in the site, creating new jobs in the process – and ensuring the local economy hangs on to one of its key contributors.
The home of global Civic production is set to be fully decommissioned by next spring, with Panattoni – which specialises in industrial real estate and warehouses – due to take over the vast majority of the location. Honda said Panattoni is “currently delivering a 2.3 million sq ft logistics centre for the largest internet retailer”, which presumably means Amazon (although it doesn’t reference the brand), representing “£400-million of private investment” and creating “in the region of 2,000 new jobs including the construction phase and future operations”.
Jason Smith, Honda UK’s manufacturing director, said: “We are pleased to have identified a capable new owner of the site. From our engagement with Panattoni and initial discussions with Swindon Borough Council, we are confident that the new owner can bring the development forward in a commercially timely fashion and generate exciting prospects for Swindon and the wider community.”
While the news is unquestionably good for the local economy, it’s obviously not going to be a case of swapping branded T-shirts and carrying on for the site’s employees. Indeed, the union that represents the majority of Swindon workers, Unite, refrained from getting overexcited, instead stating that it “cautiously welcomes the sale of Honda’s Swindon plant to Panattoni”. Unite added: “It is of the utmost importance that all stakeholders, including local and national government, Honda and Panattoni, ensure that manufacturers are given every incentive to make the site their home.”
Honda, which made the site into its global Civic hub in 2015, has based its UK operations from the location since 1985. The Swindon site produced as many as 230,423 cars per annum (in 2008), but thanks to struggling sales both in Britain and Europe, that number fell by as much as 100,000 units in the years that followed. That’s obviously not to the discredit of those who worked there, though, or the quality of the manufacturing, which was widely considered outstanding. Unite highlights this, stating that the renewed site is “crucial for providing secure well-paid jobs for our communities”.
While the news does not undo the unfortunate nature of Honda's departure, it is certainly preferable to no new owner at all. Especially in light of wider circumstances. Precisely what the future of Honda sales in the UK looks like remains to be seen, but we already know that the FK8 Type R is something of a swansong for the manufacturer's near 40 year presence. Fitting, then, that it's peerlessly good.
A shame Honda are pulling out, but it's no great surprise. They just don't make the kind of cars that most Europeans want to buy.
Remember when one certain paper got all excited that BMW was going to buy the plant? Now we've got more logistics jobs instead.
This is the kind of role on offer at Panattoni's Northampton site.
A good proportion of the companies opening these staff the majority of their pickers using agencies so that there are no formal contracts in place.
The bigger ones such as Amazon etc do directly employ, but a very high number of the middle tier ones do not.
It always surprises me that the local authorities push these are creating jobs of the future.....you go into the buildings once they are finished and 90% of the workers are on zero hours contracts.
Nice one Brexit
In seriousness, why is it that Brexiteers are unable to accept that anything has anything to do with Brexit. Why vote for it then?!!
In seriousness, why is it that Brexiteers are unable to accept that anything has anything to do with Brexit. Why vote for it then?!!
Nice one Brexit
In seriousness, why is it that Brexiteers are unable to accept that anything has anything to do with Brexit. Why vote for it then?!!
In seriousness, why is it that Brexiteers are unable to accept that anything has anything to do with Brexit. Why vote for it then?!!
te like the Jazz. The fact is, they may as well just concentrate on other markets where they can make a load more money and aren't being legislated into insolvency in the name of being "environmentally friendly".A good proportion of the companies opening these staff the majority of their pickers using agencies so that there are no formal contracts in place.
The bigger ones such as Amazon etc do directly employ, but a very high number of the middle tier ones do not.
It always surprises me that the local authorities push these are creating jobs of the future.....you go into the buildings once they are finished and 90% of the workers are on zero hours contracts.
You have to wonder if the recent ruling against Uber will change things. Hopefully it will.
There are a myriad of factors at work here and the interplay is complex, as you say Honda definitely started losing its mojo in Europe post 2008. Brexit is clearly not the defining factor. But to say it had nothing to do with Brexit is disingenuous in the extreme.
As an example, 75% of the parts that make up a Civic are imported from mainland Europe. The friction that Brexit has now added to the movement of parts in and cars out is undeniable.
Th other oft quoted argument is that the company itself states this this is nothing to do with Brexit. Given that 1) it would be madness to alienate 52% of your potential buyers, possibly more in the case of Honda's buyer age demographic, and 2) the Japanese are culturally indirect and keen to avoid embarrassment to a host Government, the notion that they would ever cite Brexit in any way is implausible.
Regardless, we can argue the reasoning but ultimately it's a sad end for Swindon and the workers and the secondary jobs they supported.
Nice one Brexit
In seriousness, why is it that Brexiteers are unable to accept that anything has anything to do with Brexit. Why vote for it then?!!
What would you do ?
I suspect, and this is only me, that the main reason was, as stated, the Civic car sales have been poor. But Honda car sales worldwide are still good, and there may well have been other reasons why they chose to close this factory down as opposed to re-investing in it to make a different model....
"The news comes two years after Honda ... announced it was selling the site amid weak sales performances in the UK and Europe"
Didn't 48% of people jump on the #becausebrexit bandwagon when the closure was announced!
TX.
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