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UK’s Euro-phobia a “big problem” says Honda boss

Honda UK has been pushed into acting after its global president suggested future investment rested on joining the Euro.

Takeo Fukui told a UK national newspaper the carmaker had made “an error” building its plant in Swindon.

“Unless the UK joins the Eurozone, we can’t add to the plant in Swindon. We’re not planning to withdraw from the UK because it is a major market and Swindon supplies it,” said Fukui.

He added that it is a big problem that the UK is not in the Eurozone as its exchange rate is difficult to forecast.

“We’re not doing any lobbying on this but every time we meet officials they say there is no interest in joining for the meantime. We have to take this at face value and reconsider our strategy,” concluded Fukui.

Honda UK later issued a statement saying it respects the UK government’s policy concerning the Eurozone. However, the Japanese manufacturer admitted that a single currency would help business efficiency.

Its manufacturing operation in Swindon, which builds Civic, remains “on track” with its planned expansion.

By the end of the year the Swindon plant will produce cars at a rate of 250,000 per annum and the workforce will incorporate 700 new employees.

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