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Honda to cut 800 jobs

"Sustained conditions of low demand in European markets".

Honda is planning to cut jobs for the first time since it began manufacturing in the UK in 1993.

The car manufacturer will cut 800 jobs from its plant in Swindon, after demand dropped in Europe.

Here's the BBC:

Honda has begun a 90-day consultation period on the job cuts and says it hopes to avoid compulsory redundancies.

"Sustained conditions of low demand in European markets make it necessary to realign Honda's business structure," the company said in a statement.

It added that demand for cars in Europe had fallen by one million in the past year.

But Honda said it was still committed to manufacturing in the UK and Europe in the long term.

And here's a statement by the Society of Motor Manufacturers and Traders, which expressed disappointment at the news:

Speaking today (11 January 2013) following the news of employee reduction proposals at Honda in Swindon, SMMT Chief Executive Paul Everitt, said, “This is very disappointing news for Honda staff and their families. The decline in European new car markets and uncertain growth prospects has forced a number of vehicle manufacturers to restructure their operations.”

“Despite challenges brought by weak European demand, the longer-term prospects for the UK automotive sector remain good. The industry has seen £6 billion of new investment from a wide-range of global vehicle manufacturers during the last two years and there is demand for skilled workers in the automotive industry and other high value manufacturing sectors. 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.”