Honda ending Civic model production at Turkey plant in 2021
Japanese automotive giant Honda is set to halt production of its Civic cars at its plant in Turkey in 2021, citing changes in the international market, Euronews Turkish reported on Tuesday.
“The global restructure will involve Honda’s automobile operations in Turkey. Honda Turkiye A.Ş. currently produces 38,000 units per year. The company will cease manufacturing current Civic sedan models in 2021 and intends to continue its business operations. Honda Turkiye A.Ş. will continue to hold constructive dialogue with Turkish stakeholders during this period,” Honda said in a statement.
Located in the western province of Kocaeli, the Honda plant began production of its Civic sedan model vehicles on site at the end of 1997. The plant has an annual production capacity of 50,000 units and employs some 770 people.
The Japanese automotive company also announced that they would be closing its Swindon factory in Britain, which produces 150,000 cars per year and employs some 3,500 people.
“In light of the unprecedented changes that are affecting our industry, it is vital that we accelerate our electrification strategy and restructure our global operations accordingly. As a result, we have had to take this difficult decision to consult our workforce on how we might prepare our manufacturing network for the future,” Honda’s Chief Officer for European Regional Operations, Katsushi Inoue, said.
The move by Honda arrives as hundreds of companies in Turkey have applied to the courts for protection from creditors or asked banks to restructure foreign currency-denominated loans after the lira slumped against the dollar last year. Losses for 2018 totalled 28 percent. Numerous international brands have left Turkey over the past year, as concerns over political developments undermine confidence in the economy.