Honda warns of production delays at Swindon plant due to transport disruption
Japanese car giant Honda has warned that it might have to suspend production at its factory in Swindon due to delays in getting hold of parts as a result of transport disruption.
The automaker operates a “just in time” system at the plant, where car parts arrive as and when they are needed.
This can leave the manufacturer open to delays if supply chains get interrupted. Honda did not comment as to whether the delays were Brexit-related.
In a statement, the firm said: “Honda informed its employees today that, due to transport-related delays, potential parts shortages may interrupt production.
“Whilst a number of measures are being taken to mitigate any disruption, there could be a temporary pause to production to enable any supply issue to be resolved.”
The BBC said that Honda was looking at options including transporting parts by air in order to stave off disruption to production, which could begin imminently.
The firm’s Swindon site, where it builds the Civic model, is due to close in July next year, a date which is “set in stone”.
Although the carmaker did not specify whether Brexit was the cause of the disruption, many firms have warned that the failure to agree a free trade deal with the EU could lead to massive delays.
As a result, many firms have been trying to build up a stockpile of parts ahead of the end of the transition period on 1 January, which has led to congestion at the UK’s ports.
Fellow carmaker Bentley, for example, has increased its stock of spare parts to cover 14 days – rather than two days previously.
It has also hired five cargo jets to fly parts to the UK in the event of border logjams in the new year.
Logistics firms are still awaiting the final details of plans for cross-border trade from 1 January, with negotiations still ongoing.
Hauliers are still awaiting clarity in a variety of areas, such as ECMT permits, community licenses, and cabotage.
These issues are dependent on the outcome of negotiations, the Department for Transport said. There are now just 23 days until the end of the transition period.
The final plans for Operation Brock and Operation Transmission – to limit disruption to customs arrangements in Kent and Portsmouth in the event of a no-deal Brexit – are also yet to be published.