AutoBeta(AutoBeta.net)02/19 Report--

Honda has decided to close its car manufacturing plant in Swinton in southwest England by 2022, which will directly lead to the unemployment of 3500 employees at the plant and deal a blow to the British government's goal of "maintaining good domestic manufacturing" after Brexit, British Sky reported.

It is reported that although Honda has decided to close its factory in the UK, it will still keep its European headquarters in Blacknier and maintain its Formula one racing team in the UK. Honda is expected to formally announce the news as soon as the 19th.

Honda's Swinton plant mainly produces Civic five-door hatchbacks and CR-V crossovers, which are exported to countries and regions around the world, most of which are exported to continental Europe. The Honda Swinton plant produced more than 160000 cars last year, accounting for about 10 per cent of the UK's total output of 1.52 million, and if the Honda plant is closed, the British car industry could be hit hard.

A British Conservative MP revealed that he had been in contact with representatives of Honda, who told him that Honda did have plans for the plant, but the reason was mainly based on the current state of the global car market and had little to do with Brexit.

As soon as the news came out, British workers at the Swinton car factory were already in a panic. At noon today, Honda confirmed plans to close its Swinton plant in the UK in 2021. Clark, the UK business secretary, later said Honda's decision to close its UK plant was "devastating".

Honda sold 5.265 million vehicles worldwide in 2018, down 0.6 per cent from a year earlier. In China, Honda had 1.4323 million vehicles in 2018 due to the outbreak of the "throttle", down 1.7 per cent from the same period a year earlier. Honda reported a 40 per cent year-on-year drop in operating profit to $1.54 billion, a 71 per cent drop in net profit to $1.53 billion and a slight increase in sales of 0.4 per cent to $36.01 billion.

Britain is an established country in the automobile industry, which is very specialized in making cars, giving full play to the craftsman spirit of the automobile industry. The British car market is very mature, but its domestic market is after all very small and must rely on exports to boost the economy. Many car companies have set up factories in the UK, but they are mainly exported to other countries and regions.

Experts had predicted that British production would reach 1.95 million vehicles by 2020, but the British auto industry has been in turmoil since the start of the Brexit process, with Jaguar Land Rover announcing plans to stop production and lay off workers long before Honda. In early January, Jaguar Land Rover officially announced its decision to cut jobs in the UK, cutting up to 4500 of its original 40, 000 employees and shutting down some factories to cut production. Jaguar Land Rover has explained that it was influenced by Brexit.

After Brexit, Britain has a great impact on Britain's import and export trade. at present, many manufacturers around the world have set up factories in the UK, but it is impossible for Britain to independently produce all the parts, which means that many parts need to be imported from abroad. After Britain levies certain tariffs on imported parts, it will certainly have a certain impact on the price of cars. Obviously, Brexit has affected the investment trend of the British auto industry, although a Honda spokesman explained that this time the plant closure plan has little to do with Brexit, but in the long run, if Brexit does occur, Honda will also have to consider withdrawing its investment from the UK.

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