Honda is set to cut 800 jobs at its Swindon plant, with the firm blaming weak demand across Europe.
However, while the factory has the capacity to built 250,000 cars a year, it produced just 166,000 in 2012.
“Honda remains fully committed for the long-term to its UK and European manufacturing operations,” said Ken Keir, Executive Vice President of Honda Motor Europe. “However, these conditions of sustained low industry demand require us to take difficult decisions.”
The Society of Motor Manufacturer and Traders' Chief Executive, Paul Everitt, said: “This is very disappointing news for Honda staff and their families. The decline in European new car markets and uncertain growth prospects has forced a number of vehicle manufacturers to restructure their operations.”
This is the first time Honda has cut jobs in the UK since it first began manufacturing here in 1992.