Honda halts UK factory producing Civic cars on congestion at ports

The Japanese car maker Honda said it hadn't run its factory in Swindon on Wednesday because of delayed parts deliveries. Picture: Ben Birchall/PA

Honda Motor halted work at its Civic plant in England as ports struggle to cope with the confluence of Covid-19 cases, the Christmas rush and preparations for Brexit.

The Japanese car maker didn't run its factory in Swindon on Wednesday because of delayed parts deliveries, a spokesman said. 

The plant that employs more than 3,000 workers and will close permanently next year is trying to restart output as soon as possible.

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

Aidan Flynn from @newsfromfta speaking at today's Brexit and Customs Conference 2020 on port congestion issues regarding customs and SPS preparedness#Brexit #BrexitReality pic.twitter.com/nB7CD00qKp

— CMG Training & Events (@cmg_events_irl) December 9, 2020

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

The industry has repeatedly warned of catastrophe if the UK fails to reach a post-Brexit trade deal with the EU.

The container port at Felixstowe in England, where Honda gets its supplies from Asia, has been severely congested by the usual blitz related to Christmas and companies looking to stockpile goods before the Brexit transition period ends at the end of this month. That’s prompted a number of cargo ships to skip stopping at the port and instead go on to their next destination.

Honda has a just-in-time production system where parts from suppliers go straight into the factory and are installed in cars rolling down the assembly line. If just one component is missing, it can halt the assembly line. 

The carmaker is considering using air freight to move some of its critical parts.

Honda in Swindon have stopped building vehicles. Problems in parts arriving, due to border delays. Our country is about to drop into a deep hole. It hasn't even started yet. This is just the sorbet to clear the palate.

— 🔶Jonathan Banks🔶 (@Jonathan_MBanks) December 9, 2020

Michael Gove, the British cabinet minister in charge of Brexit negotiations, downplayed the extent to which Britain leaving the EU is playing a role in Honda having to idle its factory. “This primarily has to do with global factors. Inevitably at this time of year, you get people who want to stock up in their warehouses. And I think that there’ll be different reasons why people were doing that.”

The UK and the EU are tightly intertwined in terms of car trade. 

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

Even a “bare-bones” accord that doesn’t address rules of origin for components and other issues would cost the industry billions, according to the UK's Society of Motor Manufacturers and Traders.

• Bloomberg