TOKYO (Reuters) – Honda has agreed to sell its only UK car factory in Swindon in southern England to logistics giant Panattoni, a company spokesman said Saturday, as the new owner is reportedly planning a major investment. to do on the extensive grounds.
The Japanese carmaker, which builds about one-tenth of Britain’s 1.5 million car production, made the decision two years after announcing its intention to discontinue production at its Swindon plant in 2019. Closer to the factory is expected to lead to 3,500 job losses.
Honda, which is struggling in Europe, said the plant’s closure was not linked to Britain’s departure from the European Union, but rather that it should concentrate its operations in regions where it expects to sell the most cars.
Panattoni said it was making a 700 million pound ($ 965 million) investment in its logistics-related development with the aim of creating new jobs once Honda completes decommissioning of the factory building its Civic hatchbacks, likely next spring. reported the Financial Times. earlier.
The latest move followed decisions by electronics companies Sony and Panasonic to move their headquarters from Britain to the EU, while Hitachi suspended a nuclear power project in Britain amid Brexit.
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Reporting by Eimi Yamamitsu and Tetsushi Kajimoto; Editing by Shri Navaratnam