Honda to close UK car plant as Brexit looms

LONDON/TOKYO (Reuters) - Honda will close its only British car plant in 2021 with the loss of up to 3,500 jobs, a major departure of Japanese investment announced just over a month before the United Kingdom is due to leave the European Union.

The Japanese firm, which builds a tenth of Britain’s 1.5 million cars at its Swindon plant, said the move was not related to Brexit and that it needed to focus its activity in regions where it expects to sell most cars, after struggling in Europe.

But the timing of the announcement, just 38 days before Brexit, comes amid deepening Japanese corporate worries about investing in Britain after it leaves the EU.

“This decision was not informed by Brexit,” said Honda Chief Executive Takahiro Hachigo.

“We had to consider the rise of electrified vehicles, and the different speeds at which electric vehicles will be taken up in North America and Europe.”

Honda, which builds its Civic car in Britain and Turkey, said it would stop making the model in both countries. The announcement comes just over two weeks after fellow Japanese carmaker Nissan reversed its decision to build a new SUV in Britain.

Honda, Britain’s fourth biggest automaker, will cease production at its Swindon plant which made 160,000 cars in southern England in 2018.

It follows decisions by Japanese electronics companies Sony and Panasonic to move their headquarters from Britain into the EU, while Hitachi put a $28 billion nuclear power project in Britain on hold in January.

Honda Motor Chief Executive Takahiro Hachigo attends a news conference in Tokyo, Japan, February 19, 2019. REUTERS/Kim Kyung-hoon