Honda's senior vice president, Ian Howells, blames a slump in sales in Europe for the decision to scale back production at the Swindon car plant, with the loss of 340 jobs.
He told our political correspondent Bob Constantine that he expected the downturn to last for "one or two years", but denied that Honda had been too optimistic about the market in the past:
Japanese car giant Honda is to cut production at its UK factory in Swindon from three shifts to two, threatening 340 jobs.
Most cars built at the plant are exported and sales in other countries have not been as strong as in the UK.
Honda said it will enter into consultation on a proposal to reduce the workforce by 340 production employees.
As well as moving to two shifts, production will be consolidated on to one line, to "improve production flexibility and efficiency" while production volumes continue at the current level.
Honda is to cut production at its Swindon factory from three shifts to two, threatening 340 jobs, the company said today.
Honda has suspended production at its Swindon plant due to the bad weather. A container ship delivering parts has been delayed on its route to the UK. It's hoped work will resume on Friday.
The firm says the stoppage will not affect customer orders as the factory will make up the lost time next week.
Car maker Honda has reached a target of cutting hundreds of jobs at their Swindon factory.
The company says it's been able to do this mainly through voluntary redundancy. Managers announced 800 job losses at the South Marston plant in January after poor sales in Europe.
The Unite Union said the reduction in compulsory redundancies was a great achievement.
A company that delivers parts on behalf of Honda will cut more than a third of its workforce.
South Marston DC, which is based in Swindon, says it will shed 370 jobs over the next two months. It follows an announcement by Honda that it is cutting car production.
Honda is to cut 800 jobs at its Swindon factory after a slump in demand across Europe - that's around a quarter of its workforce of 3500.
The news was broken to staff as they arrived this morning.
Our Wiltshire reporter Robert Murphy reports:
Swindon Borough Council leader Roderick Bluh has issued a statement reacting to the job losses at Honda.
Honda Europe's executive vice president, Ken Keir, has told The West Country Tonight that the proposed job cuts in Swindon are a long term solution to the lack of demand in the European market. He said they don't expect any further cuts and that the company has a 'long term future' in Swindon.