Honda has drawn up plans to halt production at its factory in Swindon as the economic aftershocks of Japan’s devastating earthquake and tsunami begin to reach Britain.
The Japanese carmaker, which employs 3,000 staff at the Wiltshire plant, has been hit by a parts shortage, including sat-navs and essential electronic components.
It said last night that temporary closure was one of several options. Others were limiting production or introducing an overtime ban.
Honda produces the Jazz, Civic and CR-V models in Swindon and sources up to 15 per cent of the 20,000 parts it uses in each car from suppliers in Japan.
“There will be an impact on production into May,” a Honda UK spokesman told The Times yesterday. He said that production, which runs at about 13,750 a month, was expected to continue as normal in April.
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Dave Hodgetts, managing director in Britain, has been holding talks with representatives of the Unite union and other workforce leaders over how best to deal with the shortage. “We are looking at the options available,” the spokesman said. “A decision will be made in conjunction with the workforce.”
Two Japanese Honda factories producing components will be reopened this week, relieving some of the strain. The company might also be able to import components from its operations in North America.
Other car manufacturers in Britain have been hit by Japan-related supply disruptions, exacerbated by the six weeks it can take for parts to arrive.
Toyota has imposed an overtime ban and limited Saturday shifts at its car plant in Derbyshire and an engine factory in North Wales. Nissan is “constantly monitoring the situation”.
Disruptions at Swindon would be a big blow to Honda’s workforce, which stopped producing cars for four months in 2009 amid the recession. Staff agreed then to make up for lost working hours and no jobs were lost as a result of the temporary closure.