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Honda halts UK production as port congestion holds up parts

December 10, 2020
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LONDON — Honda halted production at its Civic plant in the U.K. as congestion at ports trying to cope with Brexit-related demand delays delivery of components.

The automaker will not run its factory in Swindon, England, on Wednesday and will try to restart output as soon as possible, a Honda spokesman said.

The factory, about 80 miles east of London, built just under 110,000 cars last year. Honda is closing the plant permanently next year as part of a global restructuring.

Automakers have been bracing for border turmoil with just weeks to go before the end of the Brexit transition period.

Bentley has put cargo planes on standby to possibly transport vehicle bodies, engines or other parts, while Vauxhall maker PSA Group warned last week that disruptions are inevitable even if there is a last-minute trade deal reached with the European Union.

The auto industry has repeatedly warned of catastrophe if the U.K. fails to reach a post-Brexit trade deal with the EU. Prime Minister Boris Johnson will meet European Commission President Ursula von der Leyen on Wednesday as both sides seek to save the negotiations.

The U.K. and Europe are tightly intertwined in terms of automotive trade.

The absence of a deal would have severe consequences for manufacturers because a 10 percent duty could be applied to cars and 4 percent levy would hit parts.

Even a “bare-bones” accord that does not address rules of origin for components and other issues would cost the industry 14.1 billion pounds ($18.9 billion), according to the Society of Motor Manufacturers and Traders.

Reuters contributed to this report.

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