Honda Logistics UK to close in 2021, putting 950 jobs at risk

Announcement comes months after Honda said it will shut down Swindon car plant, main customer of Honda Logistics UK

Workers on the Honda CR-V production line at the Honda plant in Swindon (PA)

Swindon-based Honda Logistics UK, which supplies parts to Honda’s local manufacturing plant, will close down in 2021, putting 950 jobs at risk.

The announcement comes five months after Honda confirmed it will shut down the car factory, which employs 3,500 people.

In a release on its Japanese website, Honda Logistics said the car plant is the main customer of its British subsidiary and “it is difficult to continue the business due to the decision to end manufacturing”.

Honda Logistics UK later released a statement saying it entered into consultation with its workforce after Honda’s proposal in February to close the Swindon car plant.

“During this consultation process, the company investigated new business opportunities – no viable options were found,” the firm said.

Honda Logistics UK, established over 25 years ago, is one of the top 10 employers in the region, according to its website.

When Honda announced the closure of the Swindon car plant in May, it said the move was part of a broader global strategy “in response to changes to the automotive industry”.

But the company also faces the reality of uncertain tariffs on vehicle exports from the UK after Brexit. Meanwhile, in February Japan and the EU finalised a trade deal that reduced tariffs on Japanese vehicles imported into the bloc from 10 per cent to zero.

Other carmakers have acknowledged the impact of Brexit on their plans. Last week, Nissan said it will review its decision to build the Qashqai 4x4 in Sunderland if Britain leaves the EU without a deal, potentially leading to the closure of the plant, the Financial Times reported. In January, the Japanese company already said it will manufacture its new X-Trail model in Japan instead of Sunderland, despite earlier reassurances.

The prospect of a no-deal Brexit has been met with strong opposition from carmakers on both sides of the English Channel.

Mike Hawes, chief executive of the UK’s Society of Motor Manufacturers and Traders, said last month that a no-deal Brexit would be “a hammer blow” to UK manufacturers.

“The mere threat of no deal has undermined investment; and the potential imposition of tariffs, border delays and additional administrative burdens would damage competitiveness,” he added.