UK’s vote to leave the European Union in June and losing access to the EU’s single market has made some companies hesitate with their investments including Nissan, but Honda won’t be scared away.
In fact, the Japanese manufacturer wants to transform their Swindon plant into a global production hub with the help of £200 million ($244 million) investment. This financial injection will help the factory expand its production of five-door Civic hatchbacks, which are set to be exported globally including the EU markets, Japan, and the United States.
Executive Vice President, Seiji Kuraishi told reporters
that Honda will be keeping an eye on Bexit and its development. "We need to carefully watch currency exchange and sales trends. But we have no intention of withdraw from the UK and will continue doing business there."
Honda’s announcement was made a few days after Nissan reveled their intention to build the next gen Qashqai and X-Trail in Sunderland, England. Nissan stayed because the government made concessions for them and promised keep the UK car industry competitive in light of losing tariff-free access to EU markets.
Unlike Nissan, Honda didn’t ask the government for additional help. Kuraishi thinks any deals offered to Nissan because of Brexit should be given to other manufacturers too, but it won’t stop them from staying.