Honda To Cut 800 Jobs
Downturn in EU downturn blamed for shock news today - but is it because the new Civic is (hate to say it) plain 'ugly'?
Eight hundred workers will lose their jobs at Honda in Swindon after a shock announcement this morning.
The car giant, who currently employ 3,500 associates at their South Marston factory, blamed the continuing European economic downturn for the reduction.
Honda Civic:
production is being reduced after poor sales in continental Europe especially France, Spain, Italy & Greece
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Ken Keir, Executive Vice President of Honda Motor Europe, moved to reassure those fearing further cuts by confirming that "Swindon is still the cornerstone of our European production and will remain so despite this news today."
"We are setting the business constitution at the right level to ensure long term stability and security."
Spring 2013
The company targeted Spring 2013 for the cuts and said it would hold discussions with current workers in an attempt to avoid compulsory redundancies.
Job losses are now also expected at the local firms that supply the Honda factory with key components. Seat manufacturer TS Tech, based in Highworth, layed off a number of employees when Honda ceased car production for 4 months in January 2009.
'Ugly' Civic?
Launched just over a year ago in Swindon, the all-new 2012 Honda Civic had hoped to lead to a ressurgence in sales for Honda after what was a poor year in 2011 with a low of 97,000 cars produced.
Five hundred extra workers were taken on in high expectations for demand.
But mixed reviews on the styling haven't helped. Even Ken Keir admitted in April 2012 that “the new Civic is coming down the line now and has been received
reasonably well across Europe."
The Civic launched in the US was so poorly received, urgent re-styling led an all-new 2013 model being launched as recently as November.
In the UK, the Civic, while being praised for its build quality, reliablity and petrol consumption, has been described as 'boring' and 'plain ugly' by some - especially in comparison with class rivals such as the VW Golf and Ford Focus.
Last year, a third of the 166,000 cars built in Swindon in 2012 were sold in the UK, with the rest exported to 26 countries, mainly in Europe.
In all Swindon produces the The Jazz, Civic and CR-V Honda models (with a new CR-V Wagon model due soon), and has an annual capacity of 250,000.
Honda have invested over £250 million in their Swindon factory in the last two years and launched their new CR-V model in 2011.
Do you work at Honda?
What do you think of the Civic?