Brexit nears

Honda plans to close English factory by 2022 as Brexit nears

The facility in England employs 3,500 and produces the Civic model.

By JOSHUA POSANER

Japanese carmaker Honda will close its plant in Swindon by 2022, the local MP confirmed Monday.

The facility in England employs 3,500 and produces the Civic model. A Sky News report outlining the decision — set to be officially announced Tuesday — put it down to uncertainty around the U.K.'s expected exit from the EU.

The Swindon plant is Honda’s only facility in the EU and the decision is the latest bad news for the automotive sector in the U.K. given Nissan's U-turn on the construction of a new vehicle model at its factory in Sunderland.

"They are clear this is based on global trends and not Brexit as all European market production will consolidate in Japan in 2021,” local MP Justin Tomlinson tweeted following the decision.

He added that the carmaker has said no jobs would be lost before 2021 and that the government would set up a task force to manage unemployment in the area.

Without guaranteed tariff-free access to the EU, carmakers with U.K. production facilities risk far higher costs and administration in exporting their output. Over half the vehicles built in the U.K. last year were exported to the EU27.