Honda production cut due to slump

Flagging demand means there is to be a 10% cut in British vehicle production by car giant Honda - but no workers are to be axed, the firm said.

Japan's second-biggest car maker will slash output of its Civic model by 22,000 units at its factory in Swindon, Wiltshire, for four months from December.

A Honda spokeswoman said: "The economy is slowing in Europe and we have to adjust our production in line with sluggish demand there."

The factory's 4,800 workers would not lose their jobs over the production cut, she said.

Honda had planned to make 228,000 vehicles a year at the Swindon plant. The vehicles made there are mostly sold in Britain, but some are shipped to Italy, Germany and Spain. Honda also makes the CRV sport-utility-vehicle in Britain.

The move by Honda follows a similar decision by Nissan as Japanese car makers facing a prolonged slump in global demand cut back their output. Nissan said last week it would cut production at its two domestic plants and was laying off 1,680 workers in Spain because of weak demand.

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