Five questions answered on Honda’s jobs losses announcement

Axing 800 members of staff.

Car manufacturer Honda today announced it plans to scale down its work force in the UK. We answer five questions on the latest job losses at the car giant.

How many jobs will be lost at Honda?

Honda is planning on axing 800 members of its staff at its Swindon plant. This is the first time Honda has cut jobs in the UK since 1992.

A 90 day consultation period on the job cuts has now begun.

Why is Honda axing these jobs?

Japanese Honda is blaming weak demand in Europe, saying that demand for cars in the has region dropped by one million in the past year.

At the Swindon plant they built 166,000 cars in 2012, well below the capacity of 250,000. About 40 per cent of the cars produced in Swindon are sold in the UK.

The job losses shock comes after Honda announced a £267m investment in the UK in September last year.

What has Honda said?

In a press release Ken Keir, Executive Vice President, Honda Motor Europe, said:

 “Honda remains fully committed for the long-term to its UK and European manufacturing operations. 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”

What are others saying?

Society of Motor Manufacturers and Traders chief executive Paul Everitt told the BBC:

"Despite challenges brought by weak European demand, the longer-term prospects for the UK automotive sector remain good.”

Adding: “We hope that those affected will be able to take advantage of the opportunities we know exist throughout the UK sector and its supply chain."

What’s the general picture for the motor industry in the UK and Europe?

Figures from the SMMT earlier in the week showed that UK new car registrations had actually increased by 5.3 per cent in 2012 to 2,044 cars – the highest number since 2008.

SMMT figures also revealed that 54,208 Hondas were registered in the UK last year, up 7.2 per cent from 2011.

However, latest figures on car registration from the European Automobile Manufacturers' Association (ACEA) revealed that in the first 11 months of 2012, 131,346 Hondas were registered in Europe – down 6.2 per cent from the same period last year.

Peugeot also said its global sales have fallen sharply.

Further painting a bleak picture for the European motor industry is other ACEA statistics that reveal car registrations in Greece were down 41 per cent in the first 11 months of 2012. Portugal was also down by 37 per cent and Italy down by 20 per cent.

Honda will cut jobs. Photograph: Getty Images

Heidi Vella is a features writer for

Photo: Getty Images
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The buck doesn't stop with Grant Shapps - and probably shouldn't stop with Lord Feldman, either

The question of "who knew what, and when?" shouldn't stop with the Conservative peer.

If Grant Shapps’ enforced resignation as a minister was intended to draw a line under the Mark Clarke affair, it has had the reverse effect. Attention is now shifting to Lord Feldman, who was joint chair during Shapps’  tenure at the top of CCHQ.  It is not just the allegations of sexual harrassment, bullying, and extortion against Mark Clarke, but the question of who knew what, and when.

Although Shapps’ resignation letter says that “the buck” stops with him, his allies are privately furious at his de facto sacking, and they are pointing the finger at Feldman. They point out that not only was Feldman the senior partner on paper, but when the rewards for the unexpected election victory were handed out, it was Feldman who was held up as the key man, while Shapps was given what they see as a relatively lowly position in the Department for International Development.  Yet Feldman is still in post while Shapps was effectively forced out by David Cameron. Once again, says one, “the PM’s mates are protected, the rest of us shafted”.

As Simon Walters reports in this morning’s Mail on Sunday, the focus is turning onto Feldman, while Paul Goodman, the editor of the influential grassroots website ConservativeHome has piled further pressure on the peer by calling for him to go.

But even Feldman’s resignation is unlikely to be the end of the matter. Although the scope of the allegations against Clarke were unknown to many, questions about his behaviour were widespread, and fears about the conduct of elections in the party’s youth wing are also longstanding. Shortly after the 2010 election, Conservative student activists told me they’d cheered when Sadiq Khan defeated Clarke in Tooting, while a group of Conservative staffers were said to be part of the “Six per cent club” – they wanted a swing big enough for a Tory majority, but too small for Clarke to win his seat. The viciousness of Conservative Future’s internal elections is sufficiently well-known, meanwhile, to be a repeated refrain among defenders of the notoriously opaque democratic process in Labour Students, with supporters of a one member one vote system asked if they would risk elections as vicious as those in their Tory equivalent.

Just as it seems unlikely that Feldman remained ignorant of allegations against Clarke if Shapps knew, it feels untenable to argue that Clarke’s defeat could be cheered by both student Conservatives and Tory staffers and the unpleasantness of the party’s internal election sufficiently well-known by its opponents, without coming across the desk of Conservative politicians above even the chair of CCHQ’s paygrade.

Stephen Bush is editor of the Staggers, the New Statesman’s political blog.