Honda UK has announced that the new replacement for the Logo model will not be built at the company's Swindon (UK) plant.

The decline of euro is behind the change to the company's previously announced production plans. The surprise change to plans for the supermini to be built in the UK was announced today (31/10/00) in a statement from Tokyo.

The next generation CR-V compact sport utility vehicle, now being produced at Swindon, will be exported to the N. American market, says the statement. It will also be exported to the US from Japan.

This decision follows the previously announced plan (Sep. 2000) to export the new Civic 3-door model to the Japanese market and represents a greater role for Honda's European operations in the company's global strategy.

Honda, Swindon is currently undergoing expansion to 250,000-unit annual capacity, with a second plant scheduled to begin production in the summer of 2001. This shows that the company still have a strong commitment to the UK. The introduction of additional export production will allow it to achieve faster utilisation of full capacity.

This new product supply strategy is Honda's response to the rapidly changing business environment in Europe, which includes Euro depreciation. The new strategy makes efficient use of Honda's global resources - simultaneously making full use of capacity at Honda UK and helping Honda meet strong demand in North America and the 900,000 unit annual sales target in Japan.

Employment levels will not be affected by the announcement, with Honda continuing to increase its workforce at Swindon from the present 3,000 to 4,000 by 2002.