Honda to sell UK car plant

Honda has agreed to sell its only British car plant at Swindon in southern England to logistics giant Panattoni, two years after it announced its intention to cease production at the said plant.

The plant builds its Civic hatchbacks.

Honda said the plant’s closure, expected to lead to 3,500 job losses, was not related to Britain’s departure from the European Union, but to let it focus on activities in regions where it expects to sell most cars.

The Japanese automaker, which builds about a tenth of the 1.5 million car output in Britain, has been struggling in Europe.

Panattoni said it was making a $965 million investment in its logistics-related development to create new jobs once Honda completes plant decommissioning, likely by next spring.

The latest move followed decisions by electronics firms Sony and Panasonic to move their headquarters to the EU from Britain while Hitachi has shelved a nuclear power project in Britain amid Brexit.