Credit Crisis Solutions

Honda in Swindon (United Kingdom) closing for 50 days

Honda has announced plans to cut production at its plant in Swindon, which will close for 50 days next year.

Honda said it plans to make 61,000 fewer vehicles in Japan and Europe as it struggles to cope with slowing global demand.

The 50-day shutdown will mean the Swindon plant will close for the whole of February and March 2009.

“This is unexpected bad news,” said Jim D’Avilia, labour union Unite’s regional officer.

“We will not be renewing contracts for 3,000 of our temporary workers at the end of March 2009,” the company said.

Mazda, another of Japan’s largest car markers, announced on Thursday that it would cut 1,300 jobs and cut production for the current year by 48,000 units.

Tough economic conditions and banks’ unwillingness to lend money mean global demand for cars is slowing dramatically.

In the US, General Motors, Ford and Chrysler are seeking a cash injection from the government after a collapse in sales.