Honda has sold a logistics company its last remaining EU auto plant in England.
The 370-acre Swindon site that the Japanese company is closing down will be taken over by Panattoni in July.
Honda claimed that the 2019 closure was brought on by the necessity to introduce electric vehicles and developments in the global automotive sector.
The logistics company has promised to invest 700 million to renovate the Wiltshire property before turning it over to the government in the spring of 2022.
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Why has Honda UK shut down?
The shift in demand for electric vehicles has become the impetus for the end of Honda’s production in the UK, which will be replaced with a new logistics facility, developments in the local and international automotive sector.
When did Honda in Swindon shut down?
Honda of the UK Manufacturing Ltd., sometimes known as HUM, was a British automobile manufacturer and the British manufacturing division of the Japanese multinational Honda. From its headquarters in Swindon, England, HUKM ran production facilities for casting, engine assembly, pressing, welding, painting, and automobile assembly. [1] Around 3,400 people were worked there at the time of closure, and the plants took up a space of about 370 acres. [2]
Over 1.5 billion dollars have been invested in the Swindon plants by Honda overall.
[2] HUKM produced 230,423 automobiles in 2008.
[1] By 2016, yearly unit output had decreased to 134,146 units, but even so, it had increased by 12.3% during 2015. [3] At the beginning of 2019, Honda confirmed the closure of the Swindon manufacturing facility as a whole. On July 30, 2021, the facility closed, putting an end to more than 36 years of Honda production in Europe.
What’s going on at the Honda plant in Swindon?
A rendering of an apartment at the brand-new Panattoni development in South Marston.
The ‘world-class’ 700 million makeover of Panattoni’s former Honda property in South Marston has hundreds of pages worth of planning documentation.
This gives us a first glimpse at the new facility’s design and layout, as well as information about how it will be connected to the neighboring busy main roadways and how the developer of the logistics center plans to mitigate any unfavorable environmental effects that may result from its construction.
As with the Symmetry Park development, it is envisaged that the cutting-edge buildings will establish a new, high standard for industrial, storage, and distribution facilities.
A big park with a lagoon will be included at the site’s southern end, and ten apartments will be developed all around the 145-hectare area. In order to make the facilities as environmentally friendly as possible, the project team is aiming for a BREEAM Excellent Rating.
A representative for Panattoni wrote: “The Honda Manufacturing Plant’s reconstruction offers the chance to turn the location into a premier logistics and manufacturing hub.
“The applicants are dedicated to creating a best-in-class business community and employment park at Panattoni Park Swindon, setting new benchmarks for commercial development with high quality sustainable buildings, supporting facilities, and infrastructure, all set within a thorough masterplanned landscape that enhances biodiversity and is reachable for staff, visitors, and the local community by sustainable modes of transportation.
“[The site] is one of the most significant employment prospects in the UK and has the potential to draw large and medium-sized enterprises in key growth industries to Swindon.”
Only Honda’s current southern and northern roundabouts and the A361 to the west will provide access for vehicles and HGVs to and from the site. There will be a closure of the current direct link between Keypoint and the A420 for vehicles and HGVs.
Each construction plot will include room for employee conveniences including lounging areas and enhanced landscaping in addition to provisions for well-being facilities.
The 145-hectare site will be developed for light industrial, storage, distribution, and general industrial and manufacturing uses, and a new public park will be built with bike and pedestrian paths that connect existing routes. The application also asks for permission to build a logistics and manufacturing center.
On the council’s planning portal at https://pa1.swindon.gov.uk/publicaccess/, look for reference S/OUT/22/0284 to view the plans and any comments that have been submitted regarding them.
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Honda departed the UK when?
Not only will the loss of Honda in Swindon be awful for the 3,000 employees, but it will also have an impact on the local economy since 1,800 employment at two nearby suppliers would be lost. Staff members have been discussing how they are feeling as 35 years of manufacturing history come to an end.
The news that Honda would be closing the Swindon facility in February 2019 came as “a major shock” to employees like Michael Poole.
He had been an apprentice for a year when his team leader broke the news to him at a training session.
It really knocked us for six because I felt like I’d gotten my foot on a ladder of a career I was genuinely interested in.
People that you wouldn’t expect to cry shed tears. We were simply allowed to swing in the wind.
The last day of car production as well as the last day of most employee contracts was slated for Friday, July 30, 2021.
In Swindon, what is taking Honda’s place?
Today, Honda revealed that it had signed a contract to sell its Swindon facility. The facility, which the Japanese automaker initially bought in 1985, has been sold to Panattoni, the biggest builder of new industrial and logistical facilities in Europe.
At the end of the current Civic Hatchback model cycle in July 2021, Honda Motor announced in 2019 that production would halt at the UK factory as part of a restructuring of its global vehicle manufacturing activities. Honda promised to leave the site in a responsible manner with a lasting legacy for Swindon after the closure announcement.
Director at Honda of the UK Manufacturing, Jason Smith, said: “We are glad to have found a trustworthy new owner for the property. We are convinced that the new owner can move the development forward in a commercially timely manner and create exciting opportunities for Swindon and the larger community based on our interactions with Panattoni and our early discussions with Swindon Borough Council.
Honda will begin dismantling the Swindon facility as soon as production ends on July 30, 2021. The site is expected to be formally transferred in the spring of 2022, and Panattoni will begin regeneration and reconstruction as soon as the required approvals have been secured.
Panattoni’s development director, James Watson, stated: “In order to support existing firms wishing to grow in Swindon and draw new employers to the area, Panattoni has committed to investing over 700 million into the site. To revitalize the property, we will collaborate closely with Honda, Swindon Borough Council, the locals, and their representatives.
Panattoni’s managing director for the UK, Matthew Byrom, stated: “Our capacity to operate at scale is demonstrated by the acquisition of the 370-acre Honda site. Thousands of additional job possibilities in positions supporting the operation of the local and regional economies will result from the redevelopment of this vital employment site.
Swindon Borough Council Chief Executive Susie Kemp said: “Following Honda’s departure, Swindon will take a big step forward in its revitalization with the fresh opportunities described by Panattoni. The local economy will benefit greatly from their investment, and we are thrilled that this renovation will bring thousands of jobs to Swindon and the surrounding area. As a result of Panattoni’s recent development of the nearby Symmetry Park site, we already have a good working relationship with them and are forward to collaborate with them over the coming year. I think that today’s statement proves that Honda’s main objective was to find a trustworthy new owner.
Honda will examine alternatives for the use of tiny portions of the site’s edge that are not needed for Panattoni’s development by the neighboring communities as part of its ongoing efforts to leave a constructive legacy in the neighborhood.
With assistance from Honda, Panattoni will now start all necessary planning work with Swindon Borough Council.
Honda may be leaving the UK.
Honda’s Swindon plant promises “thousands” of jobs, securing a brighter future. When the Japanese company chose to stop producing cars in the UK, it pledged to leave a lasting legacy. Honda has agreed to sell its Swindon auto plant, and the buyer has pledged to create “thousands” of jobs.
What caused Honda to shut down?
Due to the anticipated drop in demand for automobiles brought on by the worldwide coronavirus outbreak, Honda North America and BMW are closing plants across the U.S. and Europe this week. Due to a predicted drop in market demand, Honda North America announced it will close four U.S.-based operations effective March 23.
Why is Honda ceasing operations?
Reuters, 22 April 2018 – Due to chip shortages and COVID-19 lockdowns, Honda Motor Co (7267. T) plans to reduce output on two lines of one of its domestic facilities by around 50% in early May, the company announced on Thursday.
Honda is closing its facility; why?
According to Nikkei Asia, Honda is taking a significant step toward switching to electricity by closing the Sayama manufacturing facility. Given that the majority of Honda’s models are currently built abroad, it also forms part of the company’s objective to lower production costs. Within the next two to three years, the facility will cease all operations while continuing to produce replacement components.
Honda hopes to have a complete EV lineup by 2040 along with a few FCEV models like the Honda Clarity, which now also comes in a hydrogen variant, despite not yet having a global EV platform. Around 2025 is when Honda plans to launch its first worldwide EV platform, but in the interim, we will receive one Honda and one Acura EV, with the latter being a Cadillac Lyriq rebadged. Both EVs will be produced at GM’s Mexico facility, which has been modified to produce EVs.
Which Honda vehicles are produced in Swindon?
Honda anticipates ceasing vehicle production by the end of July this year, at which point the site will be turned over to Panettoni in the spring of 2022.
Matthew Byrom, managing director of Panattoni, added: “Our capacity to operate at scale is demonstrated by the acquisition of the 370-acre Honda site. Thousands of new job possibilities in positions that support the operation of the local and regional economy will result from the rebuilding of this strategically important employment site.
Honda officially announced in 2019 that it would shut down the Swindon facility where the Civic family hatchback is made.
However, the Wiltshire factory will shut down when the current Civic model is replaced with a new model made abroad in the eleventh generation. Honda UK’s managing director, David Hodgetts, stated at the time that the Swindon plant’s closure was mostly due to the company only producing the Civic.
The Japanese company claimed to have made the choice “in May 2019 with a heavy heart, I returned. 3,500 jobs were lost as a result of the decision, which resulted from the scheduled closure.
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