Honda is set to cut 800 jobs at their UK factory as demand for new vehicles have gone down throughout Europe this past year. The news comes a year after the plant added 500 new jobs to help with vehicle production according to a report by Management Today.
"These conditions of sustained low industry demand require us to take difficult decisions," Ken Keir, executive vice president of Honda Motor Europe, said in a press statement. "We are setting the business constitution at the right level to ensure long-term stability and security."
Honda announced this week that over 800 workers at their Swindon plant in the U.K. will be out of a job this year as demand for new cars in Europe has declined according to a report by The Telegraph.
Honda has reported a lack of demand in key locations like Spain, Greece and Italy which is the main reason they're cutting so many jobs in 2013. The Swindon plant has been open since 1992 and employs over 3,500 workers currently. The plant has never experienced any downsizing before, but the company had no choice as Europe continues to suffer economically.
"Sustained conditions of low demand in European markets make it necessary to re-align Honda's business structure," said Keir according to The Telegraph. "As such, Honda of the UK Manufacturing (HUM) will enter into formal consultation with its associates to consider these changes and the proposal that it will reduce the workforce by 800 associates by spring 2013."
Japan's second-largest carmaker stated that approximately 150,000 vehicles were created at the Swindon plant in 2012, and the plant has an annual capacity of 250,000. A third of the vehicles are sold in the U.K., the rest are usually exported to over 26 other countries.
The plant is responsible for many different vehicles such as the Honda Civic, Jazz, and CR-V vehicles according to the company. Approximately $2 billion was invested in the plant to produce the three models according to Yahoo.
"Honda remains fully committed for the long term to its UK and European manufacturing operations, said Keir according to The Telegraph. "However, these conditions of sustained low industry demand require us to take difficult decisions. We are setting the business constitution at the right level to ensure long-term stability and security."
Related Articles:
Volkswagen Joins Forces With E! To Partner For Five Award Shows, Golden Globes, Academy Awards, Grammys Included (VIDEO)
Ford Plans To Hire 2,200 New Workers In U.S. In 2013 To Meet Growing Demand For New Vehicles
Chrysler Presents First 2013 SRT Viper At Conner Avenue Assembly Plant (VIDEO)
Python On Plane Wing: Real-Life Snake On A Plane Does Not Survive Two-Hour Flight (PHOTOS/ VIDEO)
Kate Middleton First Official Portrait Unveiled To Mix Reviews, Artist Defends His Work (PHOTO/ VIDEO)
See Now: OnePlus 6: How Different Will It Be From OnePlus 5?
