Japanese car giant Honda is to announce the end of manufacturing at its Swindon plant, putting 3,500 jobs at risk, reports said.
Honda bosses were expected to make an announcement on Tuesday regarding plans to close down the Wiltshire factory in 2022, Sky News reported.
The BBC added that unnamed sources said the company would retain a European headquarters in Berkshire.
North Swindon MP and government minister, Justin Tomlinson, confirmed the news, writing that Honda had told him the closure “is based on global trends and not Brexit as all European market production will consolidate in Japan in 2021.”
Tomlinson, who backed Brexit, added: “Honda will be consulting with all staff and there is not expected to be any job losses, or changes in production until 2021.”
A Honda UK spokesperson told HuffPost: “Honda will not be providing any further comment at this stage.”
The Swindon factory is the company’s only manufacturing base within the European Union.
Sky also reported sources as saying that factors other than Brexit were behind the decision and that the firm was likely to relocate much of its production capacity to Japan.
But with just weeks until Exit Day on 29 March, the timing of Honda’s reported announcement could be seen as provocative and prompt renewed scrutiny of the UK’s post-Brexit industrial prospects.
And a move back to Japan would allow Honda to guarantee tariff-free car exports with the EU.
Politicians and trade unions reacted with dismay at the reports.
Rachel Reeves, the chair of the Commons business committee, said: “This is devastating for Swindon, for jobs, for the supply-chain, and for the UK’s car industry.
“The threat of Brexit is already having a damaging impact on investment decisions in the UK.
“The PM now needs to rule out no deal immediately and keep us in the single market and customs union rather than risk further fatal damage to our car industry.”
Unite described the prospect of Honda’s withdrawal from Britain as “a shattering blow”.
It comes after Honda’s US rival Ford said a disorderly no-deal Brexit would be “catastrophic” for Britain’s car industry.
“We have long urged the UK government and parliament to work together to avoid the country leaving the EU on a no-deal, hard-Brexit basis on March 29,” a Ford spokesperson said earlier this month.
“Such a situation would be catastrophic for the UK auto industry and Ford’s manufacturing operations in the country.
“We will take whatever action is necessary to preserve the competitiveness of our European business.”
The Times newspaper had reported that Ford told Prime Minister Theresa May during a telephone conference call with business leaders that it was preparing alternative manufacturing sites abroad.