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Honda closes its only British factory and endangers 3,500 jobs



Japanese carmaker said Tuesday it will close a large manufacturing plant in Swindon, UK, employing 3,500 people.

Honda ( HMC ) has produced more than 3 million cars since opening three decades ago in Swindon. The factory currently manufactures the Honda Civic and is capable of producing up to 150,000 cars a year. It will be closed in 2021 after the plan announced by Honda on Tuesday.

Swindon is the only Japanese company's automobile plant in the European Union. The factory-made vehicles are exported to more than 70 countries.

The restructuring also involves Honda operations in Turkey, which currently produce 38,000 Civic sedans per year. That will stop in 2021

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  60% of British trade is still exposed to a Brexit shock.

"In the face of the unparalleled changes that are having our impact In the industry, it is vital that we accelerate our electrification strategy and restructure our global activities accordingly," said Katsushi Inoue, President of Honda Motor Europe, in a statement largest export market is one of the big clouds over the British auto industry.

Britain will leave the European Union in less than 40 days, but the details of what will happen afterwards are still uncertain. Executives of car companies have warned that leaving the block would be devastating without an agreement to protect trade for the country's auto industry.

  The Honda factory in Swindon closes in 2021.
Japan Nissan ( NSANF ) Earlier this month, plans to build the new X-Trail SUV at its factory in Sunderland, England, were dropped. As reason for the decision he called the uncertainty about the Brexit.

Other automakers have announced plans to shut down their plants immediately after Brexit for a period of time to avoid disruption.

BMW ( BMWYY ) said that it would close its mini-factory in England immediately after Brexit for a month for maintenance, as it is not sure if it will needed parts gets Britain leaves the European Union without a deal.

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