Sky reporting that Honda Plant may close

[SoloD]

Not confirmed by Honda as yet but no denial.

3500 jobs at risk and many more in the supply chain. Heart goes out to those involved, but they are highly skilled workers so let hope if this is the case they will find new jobs quickly.

There does seem to be a pattern emerging. Vital investment in the UK automotive sector has dropped 76% since the vote, despite government funding to prop up the sector.

We were told this was project fear, well it turns out it's project reality. I fear Honda won't be the last, Ford and Mini have both said they will pull out if there is a Hard Deal Brexit.

origamiunicorn why would a graduate scientist be looking at the Netherlands? The OP has already partly answered this, so I'll just add this article.

www.theguardian.com/science/political-science/2018/aug/28/a-no-deal-brexit-will-betray-british-science

So for example: '[Government documentation] stated explicitly that, as a third country, UK institutions would no longer be eligible for three Horizon 2020 funding lines: European Research Council (ERC) grants, Marie Skłodowska-Curie actions (MSCA), and SME instrument (SMEi) grants for small innovative businesses.'

A particular type of research scientist will naturally be looking to the EU, especially to a tolerant, educated country relatively close by, and where scientists routinely communicate, write and teach in English, which has access to these major research grants and the ability to lead and co-ordinate ground-breaking work and teams.

@autumncrow Plenty of well needed Research Scientist jobs here and not just in industry.

I said this would happen. I said Ford in Bridgend would close. I said Toyota and Nissan would scale down investment and eventually pull out in about a decade. I said Airbus would take its new contracts to other plants and eventually close Broughton.

So nothing to do with nearly ALL car manufacturers reducing diesel/petrol production and shifting to electric car manufacturing? Nothing to do with low sales of the Airbus planes because of the more efficient new breed of smaller planes, just like Concorde suffered because of the Jumbo 747 - things change. Brexit or not, these were going to happen anyway.

It's amazing, this Brexit thing that we're doing with vast expense and effort, when it's going to have absolutely no effect on anything whatsoever.

So nothing to do with nearly ALL car manufacturers reducing diesel/petrol production and shifting to electric car manufacturing?

Wonder why Honda isn’t interested in producing electric cars in the UK either?

car manufacturers reducing diesel/petrol production and shifting to electric car manufacturing? Nothing to do with low sales of the Airbus planes because of the more efficient new breed of smaller planes, just like Concorde suffered because of the Jumbo 747 - things change. Brexit or not, these were going to happen anyway

Of course they were! and you know more than AB CEO?
yes things change, its the rate of change/where and when....Brexit alters this, makes us less competitive.
AB have full order books for its smaller twin engined planes, plenty petrol cars still to be designed/manufactured, electric still need to be produced somewhere.

Thatcher made a deal with the Japanese (we've snubbed them and they are a proud people) also with AB on frictionless trade with EU... You people need to realise that Brexit is an opportunity for the EU to take uk multinational manufacturing and move it to the EU or avoid jobs losses there.
FS companies are moving to Holland/Dublin etc FinTech to Belgium... but nowt to do with brexit???

We are a market of 60m, EU is a market of 450m and you need to ask yourself why almost all business (who provide jobs and pay taxes) are sooooooo against Brexit?

they're also closing a petrol production plant in Turkey. And reducing petrol-engine output (not keeping it the same but miving it elsewhere)

This is casualty if the move to phase out new petrol cars in France and Germany. It would have happened Brexit or no Brexit.

If it was even slightly dependent on Brexit deal/no deal, they would not have timed it like this - they wouod have continued with the Brexit plans already announced, then made a decision after 29/03 (or after Parliamentary events setting a definitive course). I realise that does not suit the anti-Brexit knee-jerk.

The move to electric vehicles is driven by climate change, and decided by individual countries (at present, EU might in future seek common standards across all, but there's no sign of that now)

I’ve just seen Alok Sharma, Minister for Employment, on Sky News All Out Politics, say that he wasn’t involved in any discussions about Honda because “…it’s not my department…” Seriously? WTAF?

Rose - Nissan, BMW, JLR, FORD, AirBus also say Brexit has affected their plans.
There is no benefit in further delay, even if the WA goes through, there is still years more of uncertainty.

Brexit and perhaps more importantly, how it has been handled, is altering business plans.

There are just too many companies. closing or moving for it all to be just coincidental.

If you seriously deny any of this, then climate change isn't happening either.

@RoseAndRose Actually the Turkish plant closing was misreported by the BBC.

global.honda/newsroom/news/2019/c190219beng.html

"Honda Turkiye A.S. currently produces 38,000 units per year. The company will cease manufacturing current Civic sedan model in 2021 and intends to continue its business operations."

Which suggests new production in the future of a different model.

Turkey of course benefiting from the free trade agreement and customs union with the EU...

All press releases will be carefully worded to the best benefit of their business. Honda do not want to alienate their UK market, of which perhaps 52% support/ed Brexit. Read between the lines. Brexit is not THE reason but it will be A reason.

...

Interesting:

Feb 19 Europe prepares risky counter-attack in US car war as Atlantic alliance falls apart

www.telegraph.co.uk/business/2019/02/19/europe-prepares-risky-counter-attack-us-car-war-atlantic-alliance/

Feb.19 Senior economist at Berenberg, discusses the trade tensions between the U.S. and Europe and the possible tariffs on auto imports into the U.S

www.bnnbloomberg.ca/investing/video/expect-a-targeted-retaliation-from-eu-on-u-s-auto-tariffs-says-berenberg-s-pickering~1614933

Nov 18 President threatened up to 25 percent duties on foreign cars
www.bloomberg.com/news/articles/2018-11-14/u-s-said-to-hold-off-on-trump-s-car-tariffs-after-trade-meeting

Why is this in the Brexit section? Honda themselves have said this decision is nothing to do with Brexit.

Project bloody fear is everywhere right now!

www.google.co.uk/amp/s/amp.ft.com/content/4f434dda-320f-11e9-bd3a-8b2a211d90d5

Honda themselves have said this decision is nothing to do with Brexit

Yes - I agree.

Why is this in the Brexit section?

Very much related to Stilltalkstotrees' link immediately above mine (tariffs, Honda looking to increase sales of Honda Civic to the US in particular...) Appears to be breaking news today - we haven't left the EU - yet.

Very grim news for Swindon. I’m afraid the UK automotive sector is doomed and though I agree that Brexit is not the only cause, it certainly does not help - unless you think a quick death is better than a lingering one.

However, the economic news in general is good. There has been a load of inward investment in recent months in high tech industries including biotech and pharma. I think Brexit does help here though I'm not sure I can explain why. Can Swindon demand that some of this investment comes their way or would that be too interventionist for laissez faire Tories?

And there is good news generally as regards employment and wages. From the BBC news today:

“The number of people in work in the UK has continued to climb, with a record 32.6 million employed between October and December, the latest Office for National Statistics figures show.

The jobless rate, remaining at 4%, is at its lowest since early 1975.
Weekly average earnings went up by 3.4% to £494.50 in the year to December - after adjusting for inflation, that is the highest level since March 2011.”

And if you look at the ONS twitter feed there are people asking pretty searching questions about whether the good news is just part-timers and they are insisting it’s not. Don’t know how much you can trust the ONS, but still, it's encouraging.

I agree Honda boss is keen to prevent alienating the British potential market. I also think it's a tad naive to pretend that the risk of a hard brexit or god forbid a no deal brexit isn't toxic for business.

Investment in biotech and pharma isn't at the cutting edge of research - it's like seeing a once great creative fashion house turned into a knicker factory. The major research grants into key developments will be led from within the EU, like they always were - but the UK won't be part of that upper echelon.

And jobs - the key thing now for the UK is the wage to housing costs ratio. We've sat and watched this get completely fucked up for a generation, starting in the south-east mainly and gradually spreading outwards. Overall, quality of life is suffering. Brexit isn't going to fix high rental costs, shit air quality or an underfunded NHS, and it certainly isn't going to bring down food prices. I feel very sad about the waste of talent, time and money.

I was talking to my son today, Coxwell, he's doing a hard science degree, and I suspect he's already looking towards the Netherlands.

He is very welcome. It will hurt being in competition with every other highly-skilled non-EU migrant, but I hope he secures a spot and funding

Thank you, @Dutch1e. He wants to work in genetic research. He has a Dutch housemate who has massively influenced him about how awesome the Netherlands is - and he wants to remain a European, as he was born.

I've just seen the Beeb on thus. Simon Jacques said that the Japan-EU deal starts in 7 years time.

Is that correct?

Is the real story here that Honda is in trouble?

My understanding is it’s started already but the tariffs are reducing on a sliding scale over ?7 years.

All car companies are encountering ‘challenging confitions’.

Conditions*