Honda to cut Swindon production as credit crunch bites
Author: David Miles
Published: 30 September 2008
The good news confirmed yesterday, 29 September 2008, is that Honda of the UK Manufacturing will add their all new Jazz ‘supermini’ model to its production line up at their Swindon manufacturing facility.
Currently the plant builds Civic 3-door and Honda CR-V models. Production will begin in September or October 2009 although the new Jazz is being premiered this week, 2nd October at the Paris Motor Show.
Sales of the new Jazz 1.2, 1.4-litre models, supplied from Japan, will start in the UK from the end of October this year at prices ranging from £9,990 to £13,590.
Honda UK expects to sell 28,170 Jazz vehicles in the UK in 2008. A total of 160,918 have been sold in the UK since Jazz sales started in 2002.
Honda said yesterday, “The production of the new Jazz will provide greater long term stability for Honda of the UK Manufacturing (HUM) and recognises the trend towards smaller more fuel efficient vehicles in the European market. Honda expects the sales volume of the new Jazz to increase.
David Hodgetts, Director at HUM, stated “We are extremely pleased to announce production of the new Jazz at our operation in Swindon. We are looking forward to the challenge of introducing a brand new small car into mass production in 2009 which will increase our total overall volume.
"In the short term we are facing a difficult period but there will be no job losses. We have an extremely strong and flexible workforce who will continue to manufacture top quality cars for our customers”.
Bad news
Honda is facing a similar situation to many other car manufacturers due to the global downturn in demand, mainly in the Western European region.
In the short term HUM has announced a revised production plan to its workforce. From the beginning of December 2008 one of its two car plants will move onto a single shift day pattern, whilst the other plant will remain at full production.
Associates will be re-deployed across its operation. In addition, HUM will extend its Christmas shutdown period by one week as well as reallocate some production days to later next year.
Production will be cut from the expected 238,000 units, achieved in 2007, down to around 206,000 vehicles this year.
The Honda Swindon facility with its two plants covers 370 acres and employs 4,800 ‘associates’. The plant was established in 1985, produced its two millionth car this year and Honda has invested £1.38 billion in the facility.
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