Honda Has Confirmed That It Will Close Its UK Plant And Transform Into A New Energy Vehicle

- Oct 17, 2019-

In the era of the popularity of electric vehicles, auto giants have turned their attention to the new energy market, reducing the output of traditional vehicles, and hope to respond to market changes through transformation.

On May 15, according to overseas media reports, Japanese auto giant Honda has confirmed that it will close its factory in Swindon, England in 2021, when it will abolish 3,500 jobs.

In addition, according to the British "Daily Telegraph" website reported on May 13, the company said that after consulting with a number of organizations and groups including the government, the company has concluded that there is no "any viable alternative."

According to the report, Honda will immediately begin negotiations with employees on the severance treatment plan during the preparation period before the factory closes.

The Honda Swinton plant produces Civic's five-door hatchbacks and CR-V crossovers for the global market, most of which are exported to continental Europe. According to data from the JATODynamics market research organization, last year, Civic models sold 42,308 units in Europe, up 6% year-on-year; while CR-V cross-border vehicles in Europe fell 18% to 27,337 units.

Attorney Justin Tomlinson told Reuters that Honda’s move has nothing to do with Brexit, but rather a reflection of changes in the international market.

It is understood that Honda now plans to shift its "resources, capabilities and production systems" to the field of electric vehicles to "respond to changes in the automotive industry."

In fact, as early as 2017, when Honda announced its 2030 strategic plan, it said that in the era when diesel vehicles quickly turned to electric and self-driving cars, the company must develop beyond the traditional car to survive. Therefore, Honda plans to increase the proportion of low-emission gasoline hybrid vehicles, plug-in hybrid vehicles, and electric vehicles and hydrogen fuel cell vehicles to production models by 2030, from the current 5% to three-thirds. two.

However, compared with other auto giants, Honda’s electrification transformation has not gone so smoothly. Take the domestic market as an example. Except for the concept of Guangqi Honda’s VE-1 at the Beijing Auto Show, other products are only stuck in the mix. Movement stage. It can be seen that Honda has a long way to go in the transformation of traditional cars to electricization.