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Honda plant closure causes ripple effect through UK supply chain

Automaker to shift resources out of Europe into electric vehicles in China

TOKYO -- Honda Motor's decision to shutter its U.K. plant is threatening to set off a domino effect in the country's auto industry, forcing suppliers to weigh options as they lose a key customer amid uncertainty over Brexit.

Honda on Feb. 19 announced that it will close by 2021 its factory in Swindon, west of London, which is its only production facility in Europe. In addition to sluggish sales on the continent, the U.K.'s scheduled departure from the single market forced the automaker's hand. "This is the best option for optimizing our global production," Honda CEO Takahiro Hachigo said.

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