The first shipment of UK-built Honda CR-Vs left the British port of Southampton last weekend bound for the USA. The SUV exports follow on from an earlier contract won by the British Honda plant in Swindon, Wiltshire, to export the Civic three-door hatchback to both North America and Japan.
Go deeper with GlobalData
Honda of the UK Manufacturing (HUM) will this year ship 50,000 to 60,000 CR-Vs to North America and volume is expected to increase from 2003.
HUM is one of two plants in Honda’s Global Supply Network supplying the recently redesigned SUV to North America. The other factory is in Japan.
The extra volume allows HUM to increase its rate of capacity utilisation, Honda says, but this will be offset by the transfer of European Accord production back to Japan after the full model change expected later this year.
Swindon also built the previous model CR-V, which sold over one million units worldwide, for a brief period during 2000.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData“We are extremely proud of what our 4,300 associates [employees] at Swindon have achieved so far in meeting European customer requirements,” said Honda Motor Europe president Minoru Harada.
“They now have the challenge of meeting the demands of the North American SUV market. I am confident that our CR-V customers will be more than satisfied.”
Last year HUM was expanded through the addition of a second factory, which added 100,000 units to the original 150,000-unit annual capacity.
Production in the first three months of the year was up by 62 percent compared to the same period in 2001, as the £130 million ($US188 million) second car plant continues ramping up to full production.
Honda has now invested £1.15 billion ($1.66 billion) in Swindon, 70 percent of its total European investment.
Investment over the years has added additional capacity and higher line speed and flexibility, notably with the implementation of Honda’s New Manufacturing System.
This new system, introduced in 2000, requires fewer model specific items of tooling and manufacturing processes, enabling HUM to introduce new models in less time with minimum tooling costs.
HUM began car production with the first European Accord in October 1992 and the combined production capacity of the two plants is now 250,000.
Last calendar year’s production was a record 114,163, of which about half were for export, mostly to Europe.
Honda is forecasting current fiscal year output of 185,000 units – and the plant is expected to increase towards full capacity during financial year 03/04.
Total cumulative production at the plant is now over 800,000.
HUM currently builds Civic three- and five-door versions, the outgoing European Accord four and five door models and the newly-launched CR-V.
Honda says that HUM will continue to supply some of Honda’s European market needs as well as fulfilling its global supply role with the new Japanese and North American exports.
The plant builds all of the petrol engines used in the cars it makes with the exception of the Civic Type-R motor.
As ever, Honda keenly points out that no public money has ever been sought or used in the investment of any of its manufacturing operations.
