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

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David Cameron's speech: a hymn to liberalism from a liberated PM

The Prime Minister spoke with the confidence of a man who finally has a full mandate for his approach. 

At every one of his previous nine Conservative conference speeches, David Cameron has had to confront the doubters. Those Tories who rejected his modernisation of the party from the start. Those who judged it to have failed when he fell short of a majority in 2010. Those, including many in his own party, who doubted that he could improve on this performance in 2015. Today, rather than confronting the doubters, he was able to greet the grateful. As the first majority Conservative prime minister for 18 years, he rightly savoured his moment. "Why did all the pollsters and pundits get it so wrong?" he asked. "Because, fundamentally, they didn't understand the people who make up our country. The vast majority of people aren't obsessives, arguing at the extremes of the debate. Let me put it as simply as I can: Britain and Twitter are not the same thing." Labour should pin that line to its profile. 

With a full mandate for his approach, Cameron went on to deliver his most unashamedly liberal speech to date. Early on in his address, he spoke with pride of how "social justice, equality for gay people, tackling climate change, and helping the world's poorest" were now "at the centre of the Conservative Party's mission". A lengthy section on diversity, lamenting how "people with white-sounding names are nearly twice as likely to get call backs for jobs than people with ethnic-sounding names", was greeted with a standing ovation. Proof, if needed, of how Cameron has changed his party beyond recognition. The former special adviser to Michael Howard, who avowed that "prison works", told his audience that prison too often did not. "The system is still not working ... We have got to get away from the sterile lock-em-up or let-em-out debate, and get smart about this." From now on, he declared, the system, would "treat their [prisoners'] problems, educate them, put them to work." 

There were, of course, oversights and lacuna. Cameron reaffirmed his commitment to a budget surplus but glossed over the unprecedented, and many believe undeliverable, that will be required to achieve it (and which may fail to do so). He hailed the new "national living wage" with no mention of the tax credit cuts that will leave the same "strivers" worse off. His "affordable" starter homes will be unaffordable for average-earning families in 58 per cent of local areas. But it is a mark of Cameron's political abilities that it was easy to forget much of this as he spoke. Like George Osborne, he deftly appropriated the language of the left ("social justice", "opportunity", "diversity", "equality") to describe the policies of the right. Cameron is on a mission to claim ownership of almost every concept associated with Labour. The opposition should not sleep easily as he does so. 

There was little mention of Labour in the speech, and no mention of Jeremy Corbyn by name. But when the attack came, it was ruthlessly delivered. "Thousands of words have been delivered about the new Labour leader. But you only really need to know one thing: he thinks the death of Osama bin Laden was a 'tragedy'". The description of Corbyn as the "new Labour leader" shows the Tories' ambition to permanently contaminate the party, rather than merely the man.

There are plenty of potential landmines ahead for Cameron. The comically lukewarm applause for his defence of EU membership was a reminder of how divided his party is on this issue. But today, he spoke as a man liberated. Liberated by winning a majority. Liberated by not having to fight an election again. Like a second-term US president, he was able to speak of how he was entering "the second half of my time in this job". Tributes to Osborne (the "Iron Chancellor) and Boris Johnson (greeted with a remarkable standing ovation) alluded to the contest to come. But whoever succeeds him can be confident of assuming a party in good health - and more at ease with the modern world than many ever thought possible. 

George Eaton is political editor of the New Statesman.