I am extremely disappointed to hear the news that Honda are to make 800 people redundant at their Swindon Plant. This is in effect a reversal of the good news we had in April of the 500 additional jobs in preparation for a recovery of the car market in Europe.
Sadly, this recovery simply hasn't come. Whilst Honda's car sales in the UK have been extremely strong – up 7.2% last year against the 5% industry average – the European market has fallen off a cliff face. Sales in Italy are down 20% and in Greece a staggering 50%. With 40% of the cars made in Swindon being for export to Europe, the problems in the Eurozone have had a significant impact on the Plant.
Honda in Swindon has historically seen fluctuations in its workforce as it reacts to conditions in the market. They are committed to the Town and I am confident that things will improve. Firstly, there are already signs that the crisis in the Eurozone may have bottomed and as things recover, demand will pick up, just as it has done in the UK. Honda are also bringing forward the new 1.6 litre diesel engine which will provide new opportunities.
Yesterday, I met with a number of organisations – Honda, the local Job Centre, local training companies, the Department for Business, Innovation and Skills, Swindon Borough Council and Forward Swindon - to discuss how the Town as a whole can support those 800 who will be seeking new employment. There will be a strong support network in place, with advice and help delivered on site at Honda. I have also been meeting with other local employers, such as Aldi, to discuss the alternative job opportunities available, and we will help signpost people in the right direction.
If any Honda employees have any concerns or would like some advice on how to get the support they need, please do contact my Swindon Office, 1 Milton Road, SN1 5JE – 01793 533393.
