Honda agrees to sell Swindon plant to logistics giant Panattoni

On Saturday, in a statement, a spokesman for Honda said, it has agreed to sell its British car plant at Swindon in southern England to logistics giant Panattoni with the new owner reportedly planning to make a large investment at the sprawling site.

The decision to see the plant was made two years ago by Honda after it announced its intention to cease production at the Swindon plant in 2019. The closure of the plant is likely to lead to 3,500 employees losing their jobs.

Honda, which builds nearly one tenth of the 1.5 million car produced in Britain, has been struggling to sell in Europe. It said, the decision to close the plant was not related to Britain’s departure from the EU; however, it needs to focus on regions where it expects to sell the majority of its cars.

Panattoni, plans on investing $965 million (700 million pounds) in logistics-related investment in the plant, with the aim of creating new jobs, once Honda completes the decommissioning of the factory.

The development comes in the wake of Sony and Panasonic moving their headquarters to the EU from Britain.

Hitachi has also shelved a nuclear power project in Britain after Brexit.

($1 = 0.7254 pounds)

Categories: Creativity, Economy & Finance, Entrepreneurship, HR & Organization, Strategy

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