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Honda announce £267m investment in Swindon plant

Car manufacturer Honda is set to invest £267m in its UK factory based in Swindon.

Plans to nearly double output come as other car makers in the UK and across Europe are pausing production because of a lack of demand for new cars.

Honda have recruited around 500 workers for the plant to bring their workforce up to 3,500 people at the site.

Car production is expected to increase from the current annual output of 183,000 to 250,000 cars a year before the end of 2015.

The Japanese firm will make its new Civic and CR-V model at the Swindon site, and will produce a 1.7 litre engine at the factory.

While Honda supply 60 countries across Europe, the Middle East, Africa and Australia from the Swindon plant, 40% of output remains within the UK.

This is the most substantial investment Honda have made in the UK for nearly 10 years, and Business Secretary Vince Cable praised the firm for encouraging growth in the economy.

He said: “This multi-million pound investment by Honda in its 20th year of car production in the UK is great news for Swindon and the automotive sector.

Managing director of Honda UK, David Hodgetts called the Swindon site a “cornerstone” of the company in Europe. He commented: “This investment programme underpins Honda’s commitment to manufacturing in Britain and to our UK workforce.”

Katja Hall, CBI Chief Policy Director said: “Honda’s announcement once again highlights the strength of the automotive sector, even in challenging times. This major investment demonstrates the competitiveness of UK manufacturing, and will also bring significant benefits to the wider supply chain.

“The fact that car production grew for the 13th consecutive month in July shows the UK is a leading location for motor manufacturers.”

This was posted in Bdaily's Members' News section by Miranda Dobson .