Honda has confirmed future production activities and additional £200m investment at Swindon but it’s moving CR-V manufacturing to Canada.
UK component suppliers currently feeding into the Swindon plant will see a boost from the Civic investment but some loss when the SUV moves out.
Honda’s flagship production facility in Europe, Honda of the UK Manufacturing (HUM) will become a global production hub for the next generation Civic five door model, as Honda continues to develop its global production network to maximise the efficiency and quality of its manufacturing operations.
The Civic five door will be produced for the European market as well as being exported to key global markets. Further, by developing the European facility into a global manufacturing hub for this model, HUM will increase Civic volumes whilst developing improved economies of scale.
The skills, knowledge and experience accrued by Honda Associates since Civic production began at HUM over 20 years ago, will play an important role as HUM specialises in the production of the Civic model.
Honda will invest over £200million into new, advanced production technologies and processes, further enhancing Honda’s European manufacturing facilities. This new contribution brings Honda’s total investment in HUM to over £2.2billion since 1985 and it safeguards the work of 3,100 associates presently there.
“By establishing HUM as a global production facility for the Civic five door, Honda is demonstrating its long-term commitment to manufacturing in the UK and Europe.
This is incredibly important for HUM and is a reward for the commitment and effort put in by Honda Associates in recent years,” said Jason Smith, Director of HUM. “As a global production facility for the Civic five door model we look forward to making the most of the opportunity to export this model not only to our European customers, but also, to key global markets.”
As HUM develops into a specialist Civic production facility, the next generation CR-V will be manufactured at Honda of Canada Manufacturing (HCM), in Ontario and CR-V will be imported to Europe.
“This announcement sends a clear message to our Associates and suppliers of the strategic importance that Honda Motor Company places on producing cars at our plant in Swindon, UK” said Toshiaki Mikoshiba, COO and President of Honda Motor Europe. “We will continue to provide high quality products to meet the expectations of our European customers and having just unveiled four new models for the European market, we look forward with renewed optimism and purpose for Honda in Europe.”
Britain’s booming car manufacturing industry has received yet another huge boost with three major manufacturers announcing UK investments worth more than £1 billion in the past six days. Honda, Jaguar Land Rover and the London Taxi Company have each made announcements of funding to build new vehicle models, amounting to a total of £1.05 billion. The latest announcements, which come on the back of a total of £7 billion committed in 2013 and 2014, are yet more evidence of the continuing renaissance in UK car production. In 2014, more than 1.5 million cars were produced in the UK – an increase of 50% since 2009, and the sector’s best performance since 2007.
The latest announcements include:
26 March: Jaguar Land Rover announces £600million new investment into its West Midlands operations, covering Castle Bromwich and Whitley sites.
26 March: Coventry-based London Taxi Company reveals a £250 million investment – as well as the creation of 1,000 jobs – as it prepares for production of a new range of ultra low emission taxis.
Mike Hawes, SMMT Chief Executive, did not comment on the loss of CR-V manufacturing but of the Civic development said, “It has been a fantastic week for UK automotive, with more than £1 billion earmarked by vehicle manufacturers for new model production that will drive further growth for the sector. Honda’s decision to build its next generation Honda Civic, a global car in an important and growing segment, here in the UK caps off a record six days – the first time three manufacturers have announced nine-figure investments over such a short period of time.”
