Honda plans to stop production in the UK and Turkey as the carmaker struggles to maintain its position in Europe.
According to media reports, Honda’s British plant in Swindon, England will be sold to Italian logistics company Panattoni, which has decided to invest $965mn to develop its logistics business in the region. The Swindon plant contributed around one tenth of car production in the country and produced 1.5 million units per year.
Honda announced the closure of this plant in 2019. Reports stated, that the company wanted to focus on activities in other regions where it expects more sales. This closure will lead to around 3,500 job losses in the region.
In Turkey, the Japanese carmaker’s Gebze plant, which mainly produced Honda Civic with an annual production capacity of 38,000 units will be sold to the Habaz group that produces steel, heavy machinery, and industrial gases.
Honda had announced the closure of its Turkish plant also in 2019. This plant, however, and will continue operating until September this year though its sales, marketing, and after sales services will continue in Turkey, according to media reports.