Honda Restructuring Because of Electrification Plans

Honda Restructuring Because of Electrification Plans

Honda has announced major global restructuring plans due to its commitment to ramp up electric vehicle production.

The automaker has announced it will close its factory in Swindon, southern England and stop producing the Civic sedan at its Turkish operations in 2021. Honda has attributed the move to its goal of ensuring two thirds of vehicles it sells globally are EVs by 2030. The Swindon factory produces 150,000 cars per year and its Turkish operations produce 38,000. The latter will remain open.

A company statement said Honda’s EV plans had caused it to “revise its global manufacturing operations, and focus activity in regions where it expects to have high production volumes”. However, it added that the automaker would maintain its European headquarters in the UK.

Honda European chief regional operations officer Katsushi Inoue said because of “the unprecedented changes that are affecting our industry, it is vital that we accelerate our electrification strategy and restructure our global operations accordingly. As a result, we have had to take this difficult decision”.

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