Honda to closes factory for two months

Honda, the Japanese carmaker, has announced it is to temporarily close its plant in Swindon for 50 days next year.

During the closure, which will take place in February and March 2009, the factory’s 4,800 employees will receive basic pay, confirmed the company.

Honda, which is Japan’s second-largest carmaker, recently announced a 41% fall in three-month profits, due to falling sales and the strengthening yen. The closure is as a result of slowing global demand and falling sales.

As a result of the economic slump, car manufactures have reduced production and there have been thousands of job losses within the industry.

Across the Atlantic, President George W. Bush signed legislation last month that provides GM, Chrysler and Ford access to a $25 billion (£14 billion) loan to help them develop new technology, including less polluting cars.

However, the three carmakers are pressing for an extra $50 billion loan in order to survive.

Meanwhile, Mazda, another Japanese carmaker, said last week it would axe 1,300 jobs and reduce production for the current year by 48,000 units.

In addition, Isuzu, one of Japan’s largest truck makers, said it would cut production for the year by 10% and cut 1,400 domestic jobs.

Furthermore, BMW said recently it would temporarily close its factory in Oxford, which produces the Mini.

Other carmakers who have announced job losses or plant closures include Nissan and Toyota.

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