JAPAN: Honda to ship Civic from UK plant to US

Honda will be hoping that the new Civic Type R can help to reinvigorate the brand and lift flagging European sales

by Dave Leggett of www.just-auto.com

Honda is planning to export its UK-made Civic to North America to raise the rate of capacity utilisation at its UK manufacturing plant, according to a Nikkei report.

The reported move is part of a multi-pronged strategy to improve Honda's disappointing performance in Europe.

Nikkei noted that the next Jazz (Fit) will not be made at the Swindon (UK) plant and will be imported to Europe from Japan. That sourcing switch will leave Honda with a capacity utilisation hole at its UK plant. Swindon will therefore manufacture a five-door version of the car for the North American market, Nikkei said, with NA shipments planned to start in the middle of 2016. The report said that some 30,000-40,000 annual shipments to North America are targeted.

Honda has exported models to markets beyond Europe - including to Australia and Japan - from its Swindon plant at times in the past.

The Swindon factory can produce 250,000 cars a year on two lines. However one of the lines - with a 100,000-unit annual capacity - is currently idle.

The report added that Honda is also planning to move "most" of its European headquarters staff - who are based in the UK - back to Japan.

Honda in Europe has seen falling sales in recent years as it was hit by delayed product renewals as it sought to save cost in the aftermath of natural disasters in Japan and Thailand.

At the recent Geneva Show, the company outlined plans for a new product offensive including new Civic Type R, the HRV, upcoming Jazz, a fuel cell concept and a new NSX supercar. It is also launching a revised CR-V. 

Source;
http://www.just-auto.com/news/honda-to-ship-civic-from-uk-plant-to-us_id156921.aspx