With a forecast of low sales growth in Europe expected to remain in place for the next few years, Honda has decided to scale back production at its plant in Swindon, England.
Reuters reports the plant will go from three shifts to two, resulting in a 10 percent layoff in the workforce. Honda will build about 120,000 vehicles annually, down from 140,000 in 2013. Swindon has the capacity to build 250,000 cars per year, but at projected levels, the plant will be severely underutilized.
Though Honda Motors Europe senior vice president Ian Howells said his company had not seen the growth it expected in 2013 in the European market, figures for January showed overall sales climbing 5.2 percent on the strength of demand from Italy, Portugal and Greece. Meanwhile, the United Kingdom’s sales climbed 10.8 percent in 2013 to 2.26 million vehicles.