Honda has announced it will cut 800 jobs from its UK operations by this spring.
The announcement follows what Honda describes as "sustained conditions of low demand in European markets". It describes the moves as necessary in order to ensure the long-term stability of its future business.
"Honda remains fully committed for the long-term to its UK and European manufacturing operations,” said Ken Keir, Executive Vice President, Honda Motor Europe. "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.”
Honda's plant in Swindon has capacity to build 250,000 cars a year, but last year built just 166,000.
Honda's UK sales rose 7.18 per cent last year, but its market share fell slightly to 2.61 per cent, despite the full launch of its all-new Honda Civic. UK sales struggles have been reflected throughout Europe.