Honda to Suspend Output in U.K. for 6 Days after Brexit

January 10, 2019 at 5:11 PM

Honda Motor Co. is the latest carmaker to announce plans to halt production in the U.K. immediately after Britain leaves the European Union at the end of March.

The six-day suspension will enable the company to stockpile imported parts for its Swindon plant in England to offset an expected disruption in its normal supply chain when the current duty- and friction-free trade agreement with the EU ends.

Carmakers are bracing for a “hard” Brexit, which would introduce tariffs as great at 10% and impose customs inspections that are likely to create short-term disruptions to their usual just-in-time supply system.

BMW, Jaguar Land Rover, Mini, Nissan and Toyota all have warned of temporary shutdown or eventual plant closures if the continuing cost of importing components to their British factories rises significantly because of Brexit.