800 jobs to go at Honda in Swindon (From Swindon Advertiser)
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Falling European sales blamed for Honda's massive job cut
8:31am Friday 11th January 2013 in News By Leigh Robinson
800 jobs are to go at Honda's Swindon plant
Honda is to slash its workforce by 25 per cent in Swindon and as a result 800 people will be losing their jobs at the factory at South Marston. At the moment there are more than 3,500 people employed there.
The company, which provides vehicles solely for the European market, has been hit by low demand in Greece, Spain and Italy and Honda has had difficulty in selling their vehicles on mainland Europe. Ironically the UK market is buoyant and sales are doing well for Honda and other manufacturers.
Honda is now entering formal consultation with its workforce and the 800 redundancies will come from right across the board from the production line to the offices.
The workforce will be reduced by the end of April.
The 800 redundancies come less than a year after Honda recruited 500 new jobs to help build their two new cars in Swindon - the refreshed Civics and 4x4 CR-Vs. Added to that they are building a new diesel engine for their fleet of models.
But Honda says even though it is losing a quarter of its workforce it will continue building cars in Swindon for the forseeable future.
“While this is not good news for the company at the moment the decision to cut the workforce is to ensure the long term stability of its future business,” said Sam Tipper, speaking on behalf of Honda.
“Last year we celebrated 25 years in Swindon and I feel sure we will still be here in Swindon for the next 25 years.
“To date Honda has invested more than £2bn in the Swindon operation and only last September £267m was spent on modernisation of the plant here.”
To help them with their redundancies Honda will be working alongside the union Unite.
The factory will revert to two single shifts for production purposes. The number of cars to be built at the end of this financial year in March will be 171,000. Next year that figure will be reduced to 150,000.
Honda will be building a new Civic station wagon later in the year and the sporty Civic Type R probably in 2015.
Comments(36)
A.Baron-Cohen
says...
9:16am Fri 11 Jan 13
This is bad news for the Swindon Economy.
However, this is a clear warning to all of us that what happens in the EU impacts us directly.
Leaving the EU would mean the closure of Honda and many other plants leaving millions unemployed........
Tim Newroman
says...
9:56am Fri 11 Jan 13
A.Baron-Cohen wrote:Everyone in Europe would stop buying the Honda vehicles they wanted just because they were made in the UK and we'd left the EU?
This is tragic news indeed for the families of the Honda employees.
This is bad news for the Swindon Economy.
However, this is a clear warning to all of us that what happens in the EU impacts us directly.
Leaving the EU would mean the closure of Honda and many other plants leaving millions unemployed........
Do people in the EU not buy cars made in Asia, Japan or America?
Leaving the EU wouldn't make any difference to Honda's car sales in the EU.
Also, if EU demand is already low and responsible for job losses, it makes very little difference if we remain in it.
By the way, on balance I am actually for us remaining in the EU (with new caveats). It's just that the pro-EU argument that leaving would cause a collapse in exports isn't a very good one.
AGINGER
says...
10:03am Fri 11 Jan 13
Many omnibuses run virtually empty,along bus lanes which have forced the regular traffic closer together head on wise,the cycle lanes are empty,oh what a beauty the planners have created all the way to the Supermarine Roundabout up the Highworth Road from Stratton.
Always Grumpy
says...
10:15am Fri 11 Jan 13
A.Baron-Cohen wrote:What complete and utter rubbish - as usual.
This is tragic news indeed for the families of the Honda employees.
This is bad news for the Swindon Economy.
However, this is a clear warning to all of us that what happens in the EU impacts us directly.
Leaving the EU would mean the closure of Honda and many other plants leaving millions unemployed........
RichardR1
says...
10:16am Fri 11 Jan 13
If we left we could join EFTA and trade with Europe without hindrance and actually reduce the cost of British built cars as there would not be a 15% trading tariff imposed.
We could also develop trading in the 2/3rds of the world that isn't the EU, where all the emerging markets are.
Let us not forget we have a staggering £4bill a month trade deficit with the EU, but a £1 bill trading supplies with the rest of the world, which would grown exponentially without the constraints of the EU.
As for the loss of these jobs lets hope these families find some form of respite. Tragically there will be many more job loses in the short to medium term, with more and more part time working.
southside7
says...
10:17am Fri 11 Jan 13
AGINGER wrote:I agree. Kia have spotted this and are responding. The economic state we're now in dictates that practicallity and price are the main driver and Honda need to cotton on to this fast.
The quicker that this company start to manufacture a truly basic motorcar which will suffice to convey us all to work and back the better,no fancy electronics,in other words . a peoples car, Diesel, Petrol or Electric but at a respectable price.
Many omnibuses run virtually empty,along bus lanes which have forced the regular traffic closer together head on wise,the cycle lanes are empty,oh what a beauty the planners have created all the way to the Supermarine Roundabout up the Highworth Road from Stratton.
StillPav
says...
10:37am Fri 11 Jan 13
Maybe Honda should be asking their marketing department why their cars are being outsold by their competitors.
A.Baron-Cohen
says...
10:40am Fri 11 Jan 13
RichardR1 wrote:I will not go into the EU argument, it is just pointless to make anyone understand that we are stronger together....
A.Baron-Cohen I fail to understand your comment about the EU, surely it's because of the instability and bad fiscal management in the EU that countries are unable to buy from us or anyone else.
If we left we could join EFTA and trade with Europe without hindrance and actually reduce the cost of British built cars as there would not be a 15% trading tariff imposed.
We could also develop trading in the 2/3rds of the world that isn't the EU, where all the emerging markets are.
Let us not forget we have a staggering £4bill a month trade deficit with the EU, but a £1 bill trading supplies with the rest of the world, which would grown exponentially without the constraints of the EU.
As for the loss of these jobs lets hope these families find some form of respite. Tragically there will be many more job loses in the short to medium term, with more and more part time working.
This is simply not part of our collective psyche.
smartcabman
says...
10:45am Fri 11 Jan 13
A.Baron-Cohen
says...
10:46am Fri 11 Jan 13
Tim Newroman wrote:Of course, you are right, EU customers wouldn't stop buying goods because it is made out of the EU (China, UK) however UK goods would have to pay tariffs to access EU markets and also meet EU standards.
A.Baron-Cohen wrote:Everyone in Europe would stop buying the Honda vehicles they wanted just because they were made in the UK and we'd left the EU?
This is tragic news indeed for the families of the Honda employees.
This is bad news for the Swindon Economy.
However, this is a clear warning to all of us that what happens in the EU impacts us directly.
Leaving the EU would mean the closure of Honda and many other plants leaving millions unemployed........
Do people in the EU not buy cars made in Asia, Japan or America?
Leaving the EU wouldn't make any difference to Honda's car sales in the EU.
Also, if EU demand is already low and responsible for job losses, it makes very little difference if we remain in it.
By the way, on balance I am actually for us remaining in the EU (with new caveats). It's just that the pro-EU argument that leaving would cause a collapse in exports isn't a very good one.
If we can produce cheaper and better goods than global competitors then there is no reason why we should not prosper.
southside7
says...
11:04am Fri 11 Jan 13
StillPav wrote:You've answered it for me. Fiesta, Focus, Corsa. Cheaper cars, you do the math.
southside7: Do you have any evidence to back that up? A recent news item stated that UK new car registrations rose 5.3% in 2012 to 2.04 million with Ford's Fiesta and Focus, and Vauxhall's Corsa and Astra were the four best-selling models. The Volkswagen Golf came fifth, with the Nissan Qashqai in sixth place.
Maybe Honda should be asking their marketing department why their cars are being outsold by their competitors.
PJC
says...
11:14am Fri 11 Jan 13
daswilts
says...
11:15am Fri 11 Jan 13
StillPav
says...
11:17am Fri 11 Jan 13
southside7 wrote:southside7 - Is a Focus, Astra or Golf cheaper than a Civic?
StillPav wrote: southside7: Do you have any evidence to back that up? A recent news item stated that UK new car registrations rose 5.3% in 2012 to 2.04 million with Ford's Fiesta and Focus, and Vauxhall's Corsa and Astra were the four best-selling models. The Volkswagen Golf came fifth, with the Nissan Qashqai in sixth place. Maybe Honda should be asking their marketing department why their cars are being outsold by their competitors.You've answered it for me. Fiesta, Focus, Corsa. Cheaper cars, you do the math.
The Artist formally known as Grumpy Old Man
says...
11:18am Fri 11 Jan 13
I suspect the main reason is Honda produce competent, but expensive and terminally dull cars.
They also have a poor image of being an 'old man' car which means a large part of their potential customer base would not even consider them...
As a customer, if I have to buy a terminally dull car (as most are these days), I will buy the cheapest terminally dull car I can find, which invariably isn't a Honda.
Perhaps they'll turn their fortunes around with a halo car such as the CTR. Maybe they should produce a replacement for the S2000?
Otherwise I can't really see how they'll turn it around....
The Artist formally known as Grumpy Old Man
says...
11:25am Fri 11 Jan 13
StillPav wrote:The Focus and Astra are quite a lot cheaper than the Honda. The Golf is far more widely bought than any Honda in the fleet market as they retain values better.
southside7 wrote:southside7 - Is a Focus, Astra or Golf cheaper than a Civic?
StillPav wrote: southside7: Do you have any evidence to back that up? A recent news item stated that UK new car registrations rose 5.3% in 2012 to 2.04 million with Ford's Fiesta and Focus, and Vauxhall's Corsa and Astra were the four best-selling models. The Volkswagen Golf came fifth, with the Nissan Qashqai in sixth place. Maybe Honda should be asking their marketing department why their cars are being outsold by their competitors.You've answered it for me. Fiesta, Focus, Corsa. Cheaper cars, you do the math.
AFCBExile
says...
12:03pm Fri 11 Jan 13
nelle2705
says...
1:23pm Fri 11 Jan 13
Davey Gravey wrote:I have reported this post as i found it to be offensive and in bad taste in light of the current situation. I happen to be a victim of this terrible decision that Honda has had to make. Compassion is FREE !
Hopefully the ones sacked will be the utter cretins who drive like morons at the end of their shifts.
house on the hill
says...
2:24pm Fri 11 Jan 13
Very valid points, there is a recession and a lot of cheaper alternatives out there, sadly Honda havent moved with the times producing cars people actually want to buy at prices they can afford. Hopefully they will soon.
Tim Newroman
says...
2:37pm Fri 11 Jan 13
StillPav says...
Maybe Honda should be asking their marketing department why their cars are being outsold by their competitors.
While it's obviously not entirely their fault, I would suggest that - fantastic though they undoubtedly are - Honda's advertising has been too clever by half over the last 5 to 10 years.
Look at adverts by Vauxhall and Nissan for their comparable models and you'll see a massive difference in approach... and one which is working more successfully for the two companies mentioned.
Hondas advertising seems to be targetted at a market that isn't the same as the target market for their vehicles.
RichardR1
says...
5:19pm Fri 11 Jan 13
We on the other hand pay a £8.5 billion net membership fee and have a trade deficit of about £48 billion.
Not rocket science is it?
Davey Gravey
says...
8:44pm Fri 11 Jan 13
nelle2705 wrote:Considering people don't know who is affected yet, shall I report your post for lying? My point stands and is based on fact. Don't want to see people lose those job except for those who think they drive for Honda f1 when they leave work.
Davey Gravey wrote:I have reported this post as i found it to be offensive and in bad taste in light of the current situation. I happen to be a victim of this terrible decision that Honda has had to make. Compassion is FREE !
Hopefully the ones sacked will be the utter cretins who drive like morons at the end of their shifts.
nelle2705
says...
9:59pm Fri 11 Jan 13
itsamess3
says...
10:22pm Fri 11 Jan 13
Later cars and vans with accident damage or high mileage are bought repaired and clocked and sent to various EU countries where there are not the insurance regulations nor mileage safeguards and safety checks.
These more modern cars attract far greater prices there than here--as much as 3 times the price--hardly surprising Honda cannot sell new cars in the EU.
Honda workers come from far and wide to work in Swindon-much the same as the council and large companies as we have no laws that restrict employers taking on staff from anywhere as long as they are legally here.
HUM4LIFE
says...
11:49pm Fri 11 Jan 13
Just before Christmas we were told that Shift working would be extended until April 2014 and people being interviewed up until just last Weds. January we're being told that single shift and 1000 redundancies. I would like to know who is responsible for planning. I bet they're not on the redundancy list!!!
old 'arry
says...
6:45am Sat 12 Jan 13
StillPav wrote:Now is the time to dig your bean trench where you are going to plant runners later and fill it with rotted compost.
southside7: Do you have any evidence to back that up? A recent news item stated that UK new car registrations rose 5.3% in 2012 to 2.04 million with Ford's Fiesta and Focus, and Vauxhall's Corsa and Astra were the four best-selling models. The Volkswagen Golf came fifth, with the Nissan Qashqai in sixth place.
Maybe Honda should be asking their marketing department why their cars are being outsold by their competitors.
red manc
says...
8:29am Sat 12 Jan 13
nelle2705 wrote:Well said .there bloody idiots in there rented cars . . Nelle . Your no different from thousands of others its called a reccession .but not everyone who loses there job goes on a public forum looking for sympathy . .
Davey Gravey wrote:I have reported this post as i found it to be offensive and in bad taste in light of the current situation. I happen to be a victim of this terrible decision that Honda has had to make. Compassion is FREE !
Hopefully the ones sacked will be the utter cretins who drive like morons at the end of their shifts.
Localboy86
says...
8:37am Sat 12 Jan 13
Ruth123
says...
9:39am Sat 12 Jan 13
RichardR1
says...
12:11pm Sat 12 Jan 13
Honda in Swindon have tried desperately hard, sometimes against extreme provocation from within and without to maintain their Swindon/UK presence.
Their emerging markets are not any longer in the EU/Europe, so lets be thankful they remain here, it could have been much worse, whilst no consultation to those who will lose jobs.
Free Britain from the shackles of the EU and Honda's vehicles could be 15% cheaper, that is the reality.
somwal25
says...
1:22pm Sat 12 Jan 13
Davey Gravey
says...
1:29pm Sat 12 Jan 13
red manc wrote:The only person who knows theyve lost their job it would appear. None of the others have been told yet. Probably one of the morons who weaves in and out of traffic on the a419 and took offence.
nelle2705 wrote:Well said .there bloody idiots in there rented cars . . Nelle . Your no different from thousands of others its called a reccession .but not everyone who loses there job goes on a public forum looking for sympathy . .
Davey Gravey wrote:I have reported this post as i found it to be offensive and in bad taste in light of the current situation. I happen to be a victim of this terrible decision that Honda has had to make. Compassion is FREE !
Hopefully the ones sacked will be the utter cretins who drive like morons at the end of their shifts.
itsamess3
says...
1:51pm Sat 12 Jan 13
Car sales in europe are bouyant in both new and used and Hondas are selling well--but not the ones produced in Swindon.
asimo
says...
4:12pm Sat 12 Jan 13
jumper1945
says...
8:32pm Sat 12 Jan 13
Tim Newroman says...
8:39am Fri 11 Jan 13