Just-Auto is reporting that Honda will cease UK production of the Jazz (aka our Fit)

“to benefit from production economies of scale and fully [use] Honda’s global production resources”.

So, where are they going to come from?

Of the seven countries that currently produce the Fit, Just-Auto suggests that Fits built in China and Japan are the most likely candidates. But with such a strong yen, it would make little sense to end domestic production of the Jazz and import it from such a locale.

What if Honda is going to send Fits to the UK from Mexico? Honda’s UK plant provided the Jazz for Europe, alongside China and Japan. While the UK and Mexico don’t have a free-trade agreement, there is one with the EU, and that’s prompted Audi and other manufacturers to choose Mexico for plant expansion.

Honda’s UK plants will begin producing the Civic exclusively, while their Mexican factory is scheduled to start cranking out the next-generation Fit in 2014 – right when the new European Civic models are set to be introduced, alongside an all-new Jazz. Good timing, isn’t it?

Auto makers in Europe are freaking out about excess capacity, but Honda can’t get enough of it.

With a $424.9 million investment in its Swindon, England plant, Honda is doubling down on European production, and for good reason. A report by Reuters claims that 40 percent of Honda’s sales in Europe are imports, and that means exchange rates are playing havoc with profitability.

The wire service also mentions that Honda is looking for a big push in localized manufacturing

“Honda, which has seen three straight year of losses in Europe, aims to be profitable in Europe in 2013/14, when 80 percent of cars sold in the market will be sourced from the Swindon plant.”

According to the article, Britain is now a net exporter of vehicles for the first time since 1976, and Honda says that 60 percent of Swindon production will be exported. Currently, the Civic, CR-V and Jazz (our Fit) are built at the plant.