SMMT News UK Manufacturing

Honda announces boost to production

07 October 2009 #SMMT News #UK Manufacturing

Following the success of the scrappage incentive schemes operating across Europe, Honda UK has announced that volume production of the Jazz model will move to the company’s Swindon facility. 

Production of the model is moving from Japan to the UK as a result of Honda’s policy of building its most popular cars in the markets in which they are sold. The Jazz has comprised 70% of all Honda scrappage deals as consumers perpetuate the trend toward smaller, more fuel efficient cars. In the current financial year, the Swindon factory will build 20,000 units of Jazz, 75% of which will be sold within the UK market.
The impact the UK scrappage scheme has had on the UK automotive industry has been substantial. As a direct result of the scheme, the market in July, August and September performed better than expected, providing three consecutive months of growth. In August, the scheme had a positive impact on car production with one in three cars built in the UK for the home market.
At the Labour party conference on 28 September 2009, Lord Mandelson announced the extension to the scrappage scheme by 100,000 cars and vans, providing an additional boost to the economy. This was welcome news for the industry which employs over 800,000 people and while obstacles remain ahead, steady increases in production will help safeguard UK automotive jobs during the economic downturn.

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