Matt Cardy/Getty Images
Image

Honda to Invest Millions in UK Factory

March 31, 2015
Japan's number-three automaker said the cash would help improve the plant's efficiency and boost the number of passenger cars that can roll off its assembly lines. The factory presently has the capacity to make 250,000 vehicles annually.

TOKYO - Honda (IW 1000/29) said Tuesday it will spend $300 million to upgrade a British factory that the Japanese automaker downsized last year owing to a slump in European demand.

The company said it was aiming to turn its Swindon plant in western England into a global production hub for its five-door Civic compact.

Japan's number-three automaker said the cash would help improve the plant's efficiency and boost the number of passenger cars that can roll off its assembly lines. The factory presently has the capacity to make 250,000 vehicles annually.

"As a global production facility for the Civic five-door model, we look forward to making the most of the opportunity to export this model not only to our European customers, but also, to key global markets," Jason Smith, director of Honda of the UK Manufacturing, said in a statement.

A year ago, Honda cut 340 jobs at the same factory, accounting for roughly 10% of the plant's manufacturing positions, blaming weak European demand in the wake of the global financial crisis.

The plant produced about 120,000 vehicles last year, roughly half the 230,000 units it made in early 2008.

Honda earlier this year cut its annual profit forecast as its faces soaring recall costs, including from an exploding airbag crisis linked to at least five deaths.

The automaker lowered its fiscal year to March net profit forecast by 3.5% to $4.5 billion, citing "quality-related expenses" and falling sales in Japan and the world's biggest vehicle market China.

Copyright Agence France-Presse, 2015

About the Author

Agence France-Presse

Copyright Agence France-Presse, 2002-2024. AFP text, photos, graphics and logos shall not be reproduced, published, broadcast, rewritten for broadcast or publication or redistributed directly or indirectly in any medium. AFP shall not be held liable for any delays, inaccuracies, errors or omissions in any AFP content, or for any actions taken in consequence.

Sponsored Recommendations

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!