RE: Honda Swindon plant set to close

RE: Honda Swindon plant set to close

Author
Discussion

CanAm

9,320 posts

273 months

Tuesday 19th February 2019
quotequote all
yonex said:
Doubtful, that’ll be those up t’north
Merseyside, Manchester, Leeds and Newcastle all voted Remain, not to mention Scotland.

Jader1973

4,065 posts

201 months

Tuesday 19th February 2019
quotequote all
st4 said:
It’s just a rumour - nothings been confirmed.

People voted for this in the largest turn out in UK history. Brexit needs to happen and it needs to happen now.
No it isn’t. There is a statement on the Honda global news page saying HUM is closing in 2021.

Sa Calobra

37,282 posts

212 months

Tuesday 19th February 2019
quotequote all
CanAm said:
yonex said:
Doubtful, that’ll be those up t’north
Merseyside, Manchester, Leeds and Newcastle all voted Remain, not to mention Scotland.
Again remainers not actually using facts.

Bet they all think leavers are OAPs living or factory workers as well.

Oh let's have yet ANOTHER people's vote. Why don't those interviewed on the tv say that?

toppstuff

13,698 posts

248 months

Tuesday 19th February 2019
quotequote all
borat52 said:
I’d wager the timing is political, wouldn’t surprise me in the slightest that as part of the EU/Japan trade agreement the EU persuaded Japanese companies to announce U.K. closures right on brexit date to weaken the resolve of the public. That’s the sort of clandestine tomfoolery the EU revels in.
Are you naive ??

This is global free trade. UK is to be a third nation , a direct competitor with E.U. companies. That’s what leavers votes for.

We won’t be nice to the E.U. in global trade deals. When the E.U. signed their FTA with Japan they no doubt secured a lucrative deal for other E.U. sectors to sell to Japan. They don’t care the FTA has the effect of killing Japanese car cos in the UK. We would not hesitate if the shoe was on the other foot.

This is free trade. It’s what you voted for if you voted leave.

GoodDoc

559 posts

177 months

Tuesday 19th February 2019
quotequote all


Honda press release - https://global.honda/newsroom/news/2019/c190219ben...

"Honda of the UK Manufacturing Ltd. has today informed employees of its proposal to close its Swindon vehicle manufacturing plant in the UK in 2021, at the end of the current model’s production lifecycle."


Sheepshanks

32,986 posts

120 months

Tuesday 19th February 2019
quotequote all
uncler said:
Honda, as a middle of the road market position, have been hit hard for the past 5 years in particular.
Their positioning is wrong in Europe - they do quite well in the US where they’re seen alongside the other low-end brands.

Lordbenny

8,593 posts

220 months

Tuesday 19th February 2019
quotequote all
Honda’s Swindon plant was making diesel cars.

Honda don’t want to make diesel cars anymore for obvious reasons so are consolidating their UK and Turkish plants and sending the production to Japan where they will concentrate on making electric cars.

That’s it! Story over.

Derek Chevalier

3,942 posts

174 months

Tuesday 19th February 2019
quotequote all
uncler said:
I'm jumping in at the deep end here.

There may well be Brexit factors, for sure. But could it not also be down to:

1) Honda losing their market share in Europe to the Koreans in a relatively really, really short space of time, due in part to building off-piste cars that are unwanted in the Euro market (current and last gen Civics raise your hands). This isn't helped by the cars being pretty medicore compared to the competition (Ford, Mazda, Vauxhall, VW)

2) The UK's, in particular, insatiable and bizarre appetite for 'prestige' German brands (Audi, BMW, Merc, that between them have a huge percentage of the UK market now) that mean all other manufacturer's are really up against it. Honda, as a middle of the road market position, have been hit hard for the past 5 years in particular.
Agreed on this. Other than a few special cars (Civic Type R and NSX) they don't really have anything else that stands out. I did my thing by purchasing a Type R (which has been terrific), but there aren't enough who want this decent engineering over damped grab handled, unreliable german fodder.

Sa Calobra

37,282 posts

212 months

Tuesday 19th February 2019
quotequote all
Let's not forget Japan isn't in a healthy domestic position.

There will no doubt be domestic sweeteners.

Puddenchucker

4,152 posts

219 months

Tuesday 19th February 2019
quotequote all
Nothing to to with Brexit, according to Honda:

https://www.bbc.co.uk/news/business-47287386

"Honda said the move was due to global changes in the car industry and the need to launch electric vehicles, and it had nothing to do with Brexit."

kambites

67,674 posts

222 months

Tuesday 19th February 2019
quotequote all
Sa Calobra said:
There will no doubt be domestic sweeteners.
I don't think any car ever gets built anywhere without government funding of some sort these days. How much did the UK government offer Nissan to build the X-Trail here?

I think the move was probably ultimately coming anyway, there's limits to how long you can run factories under-capacity before it becomes worthwhile consolidating them. However, anyone who genuinely believes it was nothing to do with Brexit is, IMO, somewhat deluded. Multinationals are constantly reanalysing at the costs (both current and projected future) of doing business in different countries; Brexit is one thing which will have nudged that balance.

If Honda are saying it was nothing to do with Brexit, they are quite frankly lying because no major company is stupid enough not to make into account something as significant as a potential 10% import duty on 80% of their production. I think what Honda are saying is that it can't be directly attributed to Brexit (which is certainly true). Of course the fall in the value of the pound will have pushed production costs here down, but all of these things will be part of the equation.

Edited by kambites on Tuesday 19th February 09:10

Shappers24

824 posts

87 months

Tuesday 19th February 2019
quotequote all
Puddenchucker said:
Nothing to to with Brexit, according to Honda:

https://www.bbc.co.uk/news/business-47287386

"Honda said the move was due to global changes in the car industry and the need to launch electric vehicles, and it had nothing to do with Brexit."
Surprised the beeb included that quote given how skewed their articles towards brexit are.

themule

98 posts

76 months

Tuesday 19th February 2019
quotequote all
Many manufacturing (and other) businesses are moving or are planning to move out of the UK because of Brexit. The bosses of the companies have been consistently saying that is a major reason - so why not listen to what they are saying? It shouldn't come as a surprise and I don't understand why people are arguing about the reason.

We have chosen to move out of the worlds 2nd largest economic zone and to move away from huge trade deals with China, USA and Japan that took many years to negotiate. Of course that will have a massive effect on UK business.

Does anyone on here genuinely believe that Brexit has nothing to do with car makers cutting back or closing their UK manufacturing?

Sa Calobra

37,282 posts

212 months

Tuesday 19th February 2019
quotequote all
themule said:
Many manufacturing (and other) businesses are moving or are planning to move out of the UK because of Brexit. The bosses of the companies have been consistently saying that is a major reason - so why not listen to what they are saying? It shouldn't come as a surprise and I don't understand why people are arguing about the reason.

We have chosen to move out of the worlds 2nd largest economic zone and to move away from huge trade deals with China, USA and Japan that took many years to negotiate. Of course that will have a massive effect on UK business.

Does anyone on here genuinely believe that Brexit has nothing to do with car makers cutting back or closing their UK manufacturing?
Why aren't Honda opening the factory in the EU in eastern Europe then?

I'm all ears.

wab172uk

2,005 posts

228 months

Tuesday 19th February 2019
quotequote all
Zombie said:
Omega1987 said:
Very dissapointing news and sad to see some remainers gleefully using this as a political football when workers and their families now face a period of hardship.
As opposed to Brexster's gleefully calling Remainers names and shouting "Project fear" Ad-nauseam for the last 2 years?

I am not gleeful. I am fcensoredg apocalyptic with the Politicians who lied, the leave campaigners who lied cheated and ultimately subverted what was supposed to be a democratic vote and, yes, I am bloody angry with the halfwits who swallowed their BS and voted for brexit.

The same halfwits and berks who have subsequently bleated "project fear", "brexit means brexit", "will of the people", "it's done, we just need to get on with it" in spite of the promised unicorns and rainbows they initially voted for vanishing into a fog of blue passports and intangible sovereignty.

And now that "project fear" is fast becoming demonstrable fact, Remainers are "gleeful"?

I'm inclined to suggest you move on in short, jerking movements.

As for "face a period of hardship" WTF else do you think those workers will do? Walk into another manufacturing job? Where, exactly? The promised Unicorn Factory 'down road that unfreezes chlorine washed Moog and Marty for the UK's sovereign edification?

Or maybe Dyson's new red white and blue tartan paint plant? I'm sure there will be a Brexit Celebration Edition Vacuum on offer - with a Union Jack colour scheme and patriotic fake news (imprinted) filter.

Better yet, they could tend the bar in Wetherspoons?

"One pint of rightwing spam and nostalgia with an info-zine of fascist fantasy coming right up, Sir"

But is this land of opportunity likely to present itself before or after a skilled workforce have lost their homes?

Most will be 3 months (paychecks) away from having their homes repossessed. That hardship you so willingly dismiss will be both prolonged and sustained, you utter cretin.

Edited by Zombie on Tuesday 19th February 02:37
A quote from the Honda Press conference

"Honda have been very clear – this decision has been made because of global trends and is not related to Brexit. The Turkey factory will also close as all European market production is being consolidated to Japan where the company is based.

"This consolidation is made easier by the new EU-Japan trade deal which will allow Honda to produce their cars in Japan and import them into the EU, rather than produce the cars in Europe"




But why let facts get in the way of a good remoaner rant. I'm sure the BBC will run "Because of Brexit" BS for a few weeks to stir up anger. The remoaners will get a few more weeks of angry conversations where they'll predict once again the UK will sink on March 30th.

For all the Just in time BS that was spouted by the BBC this morning. MOst of the components for the Honda cars are manufactured here in the UK. So unless our truck need to pop over to France instead of driving up the road, then the `Just in time` BS is just that. BS.

Plus what about components shipped in from Japan, and even the US. Companies still get `Just in time` deliveries from none-EU countries every single day. If we can get components in from the other side of the world today, I'm sure we can get a box of screws delivered from Germany `just in time` too.



Edited by wab172uk on Tuesday 19th February 09:23

kambites

67,674 posts

222 months

Tuesday 19th February 2019
quotequote all
Sa Calobra said:
Why aren't Honda opening the factory in the EU in eastern Europe then?
Why on earth would they do that when they have an existing factory in Japan with spare capacity they can use and (in the mid to long term) pay no import duties? Moving production is always expensive, but moving production to an existing factory is far cheaper than building a new one!

Sa Calobra

37,282 posts

212 months

Tuesday 19th February 2019
quotequote all
Then we have financial Giants like Citibank who commit to the UK. Not a company with less than 1% market share of the European market.

These companies threatening to leave specifically because of Brexit. Have they left?

wab172uk

2,005 posts

228 months

Tuesday 19th February 2019
quotequote all
yonex said:
expat47 said:
I wouldn´t be surprised if the majority of emloyees at Swindon had voted for brexit.........
Doubtful, that’ll be those up t’north
wobblewobblewobble

South East - 51.8% Leave. 48.2% remain
South West - 53.7% Leave. 47.4% Remain

I blame the Southerners !!!!!!

Tryke3

1,609 posts

95 months

Tuesday 19th February 2019
quotequote all
kambites said:
I don't think any car ever gets built anywhere without government funding of some sort these days. How much did the UK government offer Nissan to build the X-Trail here?

I think the move was probably ultimately coming anyway, there's limits to how long you can run factories under-capacity before it becomes worthwhile consolidating them. However, anyone who genuinely believes it was nothing to do with Brexit is, IMO, somewhat deluded. Multinationals are constantly reanalysing at the costs (both current and projected future) of doing business in different countries; Brexit is one thing which will have nudged that balance.

If Honda are saying it was nothing to do with Brexit, they are quite frankly lying because no major company is stupid enough not to make into account something as significant as a potential 10% import duty on 80% of their production. I think what Honda are saying is that it can't be directly attributed to Brexit (which is certainly true). Of course the fall in the value of the pound will have pushed production costs here down, but all of these things will be part of the equation.

Edited by kambites on Tuesday 19th February 09:10
Can you imagine thick brexiteers picketing Honda for being anti British, dont think you will find many companies putting their neck out in this climate. Funnily enough there's a article in the guardian about the Japan trade deal, they nearly cancelled it because we are too stupid to write a simple letter

expat47

6 posts

64 months

Tuesday 19th February 2019
quotequote all
yonex said:
Doubtful, that’ll be those up t’north
City of Swindon voted for brexit. Confirmed!