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Four-month shutdown for Honda UK | Four-month shutdown for Honda UK |
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Honda has announced that it plans to stop production at its plant in Swindon for the months of April and May, because of a collapse in global sales. | Honda has announced that it plans to stop production at its plant in Swindon for the months of April and May, because of a collapse in global sales. |
The carmaker had already announced in November the plant would be shut during February and March. | The carmaker had already announced in November the plant would be shut during February and March. |
This represents the longest continuous halt in production at any UK car plant. | This represents the longest continuous halt in production at any UK car plant. |
Honda said that there were no plans for redundancies and that it intended to "safeguard employment" for those workers who wanted to stay. | Honda said that there were no plans for redundancies and that it intended to "safeguard employment" for those workers who wanted to stay. |
Workers at the plant will get full pay until the end of March. Although negotiations are not yet complete, workers are likely to receive about 65% of their pay for the remaining two months of the shutdown, the company said. | |
They will also owe the time back to Honda when the plant reopens. | |
"Our members are stunned and worried about what happens next," said local Unite union officer Jim D'Avila. | "Our members are stunned and worried about what happens next," said local Unite union officer Jim D'Avila. |
No recovery | No recovery |
CUTTING BACK Aston Martin: Extended Christmas shutdown and 600 redundanciesBentley: Worked a three-day week in October and longer Christmas breakGM (Vauxhall): Extended Christmas closure and 40-day shutdownHonda: Four-month shutdown between February and MayJaguar Land Rover: Series of one-day shutdowns and production cuts late 2008 plus 450 redundancies plannedMini: Christmas shutdown extended by 10 days. 300 agency staff let go and one week shutdown planned for February and two weeks in AugustNissan: Two-week shutdown late last year and 1,200 redundancies Toyota: One of the night shifts suspended Source: SMMT EU ministers discuss car aid | CUTTING BACK Aston Martin: Extended Christmas shutdown and 600 redundanciesBentley: Worked a three-day week in October and longer Christmas breakGM (Vauxhall): Extended Christmas closure and 40-day shutdownHonda: Four-month shutdown between February and MayJaguar Land Rover: Series of one-day shutdowns and production cuts late 2008 plus 450 redundancies plannedMini: Christmas shutdown extended by 10 days. 300 agency staff let go and one week shutdown planned for February and two weeks in AugustNissan: Two-week shutdown late last year and 1,200 redundancies Toyota: One of the night shifts suspended Source: SMMT EU ministers discuss car aid |
"The European car market is not showing any signs of recovery yet and therefore, we have to reduce our production output further," said David Hodgetts, director of Honda UK Manufacturing. | "The European car market is not showing any signs of recovery yet and therefore, we have to reduce our production output further," said David Hodgetts, director of Honda UK Manufacturing. |
"We will continue to take prompt and flexible counter-measures to ensure that we can meet these challenges with this severe market situation," he added. | "We will continue to take prompt and flexible counter-measures to ensure that we can meet these challenges with this severe market situation," he added. |
Bentley, Vauxhall and Jaguar Land Rover have all halted production or cut the working week in order to combat falling demand for their cars. | Bentley, Vauxhall and Jaguar Land Rover have all halted production or cut the working week in order to combat falling demand for their cars. |
Derek Simpson, joint leader of Unite, said the car industry "desperately needs to see some form of lifeline being thrown to the sector from the government". | Derek Simpson, joint leader of Unite, said the car industry "desperately needs to see some form of lifeline being thrown to the sector from the government". |
EU business ministers are meeting in Brussels on Friday to discuss ways to help carmakers through the economic downturn. | EU business ministers are meeting in Brussels on Friday to discuss ways to help carmakers through the economic downturn. |
Unite union officer Jim D'Avila on the shutdown | Unite union officer Jim D'Avila on the shutdown |
Ahead of the meeting, the EU's Industry Commissioner Guenter Verheugen warned the outlook for the European car industry was "brutal" and predicted not all European manufacturers would survive the crisis. | Ahead of the meeting, the EU's Industry Commissioner Guenter Verheugen warned the outlook for the European car industry was "brutal" and predicted not all European manufacturers would survive the crisis. |
After the meeting, he said the EU did not intend to relax competition rules on state aid and warned against any "races to subsidies". | After the meeting, he said the EU did not intend to relax competition rules on state aid and warned against any "races to subsidies". |
1 What should be the busy bustling hub port for the UK's vehicle industry, has quickly turned into a giant car park | 1 What should be the busy bustling hub port for the UK's vehicle industry, has quickly turned into a giant car park |
But he did not rule out increasing loans to carmakers from the European Investment Bank. | But he did not rule out increasing loans to carmakers from the European Investment Bank. |
Honda employs 4,200 people in the UK and exports the Civic to 60 countries worldwide. | Honda employs 4,200 people in the UK and exports the Civic to 60 countries worldwide. |
Honda announced earlier on Friday that it would cut 3,100 temporary jobs in Japan and reduce domestic production by 56,000 vehicles, to combat a dramatic slump in global car sales. | Honda announced earlier on Friday that it would cut 3,100 temporary jobs in Japan and reduce domestic production by 56,000 vehicles, to combat a dramatic slump in global car sales. |
Rivals Toyota and Nissan have also announced production cuts this week. | Rivals Toyota and Nissan have also announced production cuts this week. |
Do you work at Honda in Swindon? What are your experiences of working in the current economic downturn? Send us your comments using the form below. | Do you work at Honda in Swindon? What are your experiences of working in the current economic downturn? Send us your comments using the form below. |
In most cases a selection of your comments will be published, displaying your name and location unless you state otherwise in the box below. | In most cases a selection of your comments will be published, displaying your name and location unless you state otherwise in the box below. |