A spokesman said it was "very likely" that Honda, which recorded a near £60m deficit for the 12 months ended March 31, would see further losses in 2001. He blamed the position on a downturn in major export markets, the strength of the pound and yen against the euro and low consumer confidence.
Honda has confirmed its commitment to UK expansion,which includes building a new car plant in Swindon in a bid to raise productivity and combact the weak euro. It hopes to boost exports to the US market, where the exchange rate is more favourable.
The spokesman said: "We can't change the currency situation. But instead of complaining against it we though we would increase productivity by making cars that are popular."