Honda to cut 800 jobs from Swindon plant

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Honda to cut 800 jobs from Swindon plant

The Japanese marque has begun a 90-day consultation period on job cuts in order to avoid compulsory redundancies.

Honda has been producing the Civic, Jazz and CR-V models in the Swindon plant since 1992 but despite selling 18% more vehicles in the UK during 2012, the Eurozone crisis has hit hard, with sluggish sales in other European markets.

The firm currently employs 3,500 people, having added 500 extra members to the workforce last year, but in a statement said, "Sustained conditions of low demand in European markets make it necessary to realign Honda's business structure."

Honda hit back by reaffirming its commitment to manufacturing in the UK and Europe in the long term, but the Swindon plant only produced 166,000 cars in 2012, well below the 250,000-vehicle capacity.

SMMT chief executive Paul Everitt believes the news isn't all doom and gloom. "Despite challenges brought by weak European demand, the longer-term prospects for the UK automotive sector remain good," explained Everitt. "We hope that those affected will be able to take advantage of the opportunities we know exist throughout the UK sector and its supply chain."

Honda isn't the only manufacturer to suffer the wake of Eurozone problems; Peugeot Citroen also blamed "the crisis affecting the European automobile market" for their sharp drop in sales during 2012.