Honda to halt production at Swindon for two months
The announcement that Honda is to halt production of cars at the company's Swindon factory for two months early next year is a further sign that the UK car market has fallen to its knees. Earlier this week we saw the UK Car Association plead with the authorities for a multibillion pound bailout package and while await a response to their request the market seems to be getting worse and worse.
All UK car manufacturers are struggling and cash flow is becoming a major concern for many with literally no business being transacted in the new car market. Indeed we even had an offer last week of buy one get one free on a new car, such is the desperation to keep businesses ticking over. It will be interesting to see how the government reacts to the demand for a bailout as there are concerns that the industry could literally disappear over the next few months.
This is by far and away the worst trading conditions which the industry has seen for many years and there are grave concerns that a great number of car retailers and car manufacturers may well go out of business. Quite what the government can do and is prepared to do remains to be seen.
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