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Honda’s UK plant makes the Civic and is due to close in 2021 |
Honda in the UK has said it is temporarily halting manufacturing at its Swindon factory due to transport-related delays to parts supplies.
“Whilst a number of measures are being taken to mitigate any disruption, there could be a temporary pause to production to enable any supply issue to be resolved,” the company said in a statement.
Media reports in Britain suggest that major sea ports are experiencing congestion to freight movements due to a combination of factors, including coronavirus restictions and higher volumes as some companies stockpile ahead of uncertainty surrounding Brexit changes to UK-EU freight movement rules from 1st January.
Transport between Britain and mainland Europe is likely to face some disruption even if there is an agreement before the transitional arrangements expire at the end of the year. The UK goverment and the EU Commission are currently undertaking negotiations for a free trade deal to apply from Ist January and avoid WTO tariffs. However, freight transport between Britain and the EU custom area is likely to face some disruption due to increased border checks even if a deal is struck.
Honda’s Swindon plant makes the Civic but is due to close in July next year.
UK automotive manufacturers with pan-European supply chains rely on the fast movement of parts across borders as part of ‘just-in-time’ lean manufacturing practices which minimise stock holdings in normal circumstances. However, concerns are growing over the possibility of disruption to future UK-EU freight movements and knock-on cost implications.
VW Group-owned Bentley has said it is making contingency arrangements for air freight solutions for parts in case of a ‘no-deal’ Brexit.
See also: Bentley readies parts planes for no deal Brexit