This is particular investment is the largest made by the Japanese company in over a decade. The multi-million pound programme marks the beginning of the production of the new CR-V model.
This injection of cash has helped the Swindon workforce swell from 3,000 to 3,500 in order to support the production of Honda’s new Civic CR-V and a new 1.6-litre diesel engine. The 1.6 litre diesel engine for the new Civic compact car should help Honda to become a fiercer contender in the highly competitive European car market. Honda’s distinct lack of a diesel option has been the source of some pain for them, and this investment should rectify the situation.
Production at the 370-acre Swindon site is forecast to have doubled by the end of 2012 bringing the number of cars rolling off the line to 183,000. Plans are afoot to treble that figure within three years to 250,000 units.
Managing director of Honda UK, Dave Hodgetts announced that the investment underpins Honda’s commitment to its UK workforce and manufacturing.
He went on to say that this reinforces that fact that for the last 25 years, the Swindon plant has been the keystone of the firm’s European operations.
Government ministers have visited British car plants on numerous occasions over the past year. Despite the recession, these big exporters have succeeded in adding jobs. 60% of the output from Honda’s Swindon factory goes to over 60 countries worldwide. Cars are shipped across the globe to countries in Europe, the Middle East, Africa and Australia.
In fact, prime minster, David Cameron paid a visit to Honda’s Swindon site back in December 2011 when the addition of 500 jobs was first announced.
This change of circumstances for Honda is good news, given firm’s four month closure of the plant during the banking crisis of 2009. Natural disasters in Thailand and Japan last year also had a negative impact which hit the business hard.
This boost for the Honda’s workforce at the Swindon factory has been welcomed by many, including Paul Everitt, chief executive of The Society of Motor Manufacturers and Traders. He acknowledged this move as exceptional news for the industry.
He also added that the manufacturing industry was driving recovery in the UK and that long-term investments such as those within the automotive sector are playing an increasingly significant role in a rebalanced United Kingdom economy.
The fact that Honda is so committed to the United Kingdom reflects the growing competitiveness and strength of the car manufacturing industry. The broader economic ramifications of this news are evident in the newly created jobs to support the manufacturing of new model programmes.
Long-term investments are being made right across the UK’s automotive sector. Their role in driving recovery shouldn’t be underestimated.
This announcement from Honda follows news that a fall in demand from Europe has prompted Vauxhall to shut down its UK plants in September for the duration of one week.
Vince Cable, business secretary agreed that the Japanese car maker’s multi-million pound investment is great news for Swindon and the UK as a whole.
Honda is not alone in adding jobs within the sector. Nissan, Toyota and Jaguar Land Rover are creating more jobs as their UK operations expand. In a bid to expand their Mini small car range, BMW plans to invest a further £250 million in the United Kingdom by 2015.
According to the Society of Motor Manufacturers and Traders, the past two years has seen UK-based car manufacturers announce investments to the tune of £6 billion. Currently the UK produces around 1.5 million cars per year, but forecasts point to the industry surpassing its previous peak in production back in 1972 by the year 2015.