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Tuesday, 19 February 2019, 16:21 HKT/SGT

Source: Honda
Honda Announces Global Automobile Manufacturing Restructure

United Kingdom, Feb 19, 2019 - (JCN Newswire) - Honda will restructure its global manufacturing network. This restructure comes as the company accelerates its commitment to electrified cars, in response to the unprecedented changes in the global automotive industry. The significant challenges of electrification will see Honda revise its global manufacturing operations, and focus activity in regions where it expects to have high production volumes.

As a result, Honda of the UK Manufacturing Ltd. has today informed employees of its proposal to close its Swindon vehicle manufacturing plant in the UK in 2021, at the end of the current model's production lifecycle. The plant currently produces 150,000 cars per year, and employs approximately 3,500 people. Consultation activity will begin today with potentially affected employees.

The global restructure will also involve Honda's automobile operations in Turkey. Honda Turkiye A.S. currently produces 38,000 units per year. The company will cease manufacturing current Civic sedan model in 2021 and intends to continue its business operations. Honda Turkiye A.S. will continue to hold constructive dialogue with Turkish stakeholders during this period.

"In light of the unprecedented changes that are affecting our industry, it is vital that we accelerate our electrification strategy and restructure our global operations accordingly. As a result, we have had to take this difficult decision to consult our workforce on how we might prepare our manufacturing network for the future. This has not been taken lightly and we deeply regret how unsettling today's announcement will be for our people," said Katsushi Inoue, chief officer for European Regional Operations, Honda Motor Co., Ltd., and president, Honda Motor Europe.

Honda's European HQ will continue to be located in the UK. It will be focused on serving the needs of our European customers.

About Honda of The U.K. Manufacturing Ltd.

Established: February 1985
Location: Swindon, Wiltshire, UK
Capital: EUR670 mil.
Capitalization ratio: 13.7% Honda Motor Co., Ltd., 86.3% Honda Motor Europe Ltd.
Representative: Managing Director, Jun Nishimoto
Business: Manufacturing of automobiles and engines
Employment: approx. 3,500
Start of Production: 1989 (engine), 1992 (automobile)
Models produced: Civic Hatchback, Civic Type R

About Honda Turkiye A. S.

Established: April 1992
Location: Kocaeli, Turkey
Capital: 280 mil. TRY
Capitalization ratio: 100% Honda Motor Europe Ltd.
Representative: President, Takuya Tsumura
Business: Manufacturing and Sales of automobiles, Sales of Motorcycles
Employment: approx. 1,100
Start of Production: 1997 (automobile)
Models produced: Civic Sedan

About Honda

Honda Motor Co., Ltd. (TSE:7267 / NYSE:HMC / LSE:HNDA) is one of the leading manufacturers of automobiles and power products and the largest manufacture of motorcycles in the world. Honda has always sought to provide genuine satisfaction to people worldwide. The result is more than 120 manufacturing facilities in 30 countries worldwide, producing a wide range of products, including motorcycles, ATVs, generators, marine engines, lawn and garden equipment and automobiles that bring the company into contact with over 19 million customers annually.

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Feb 19, 2019 16:21 HKT/SGT
Source: Honda

Topic: Press release summary
Sectors: Automotive
From the Asia Corporate News Network

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