Honda is shutting down its UK factory in Swindon in 2021 and putting a total of 7,000 jobs at risk, the company confirmed on Tuesday.
Swindon, which serves as Honda’s sole European hub, directly employs 3,500 people. But another 3,500 jobs could disappear too.
“A further 3,500 people may be affected when we take into account other Honda businesses … that provide parts supply, logistics, and support to the Swindon factory,” the company said in a written statement. The jobs are within Honda subsidiaries and “affiliated companies,” it said.
The British car industry directly employs roughly 186,000 people in the UK, with a total of 856,000 jobs dependent on the sector, according to recent data from the Society of Motor Manufacturers and Traders (SMMT).
The Japanese car manufacturer said the factory closure was the result of a push towards expanding its electric car production. Brexit was not mentioned in the statement, though it remains top of mind as the Brexit deadline approaches next month.