Car production is to be cut at Honda's UK plant in Wiltshire due to the economic downturn.

The Japanese car giant said annual manufacturing at its plant at Swindon would be reduced by a further 10,000 units at the beginning of next year.

This is over and above the 22,000-vehicle reduction announced at the end of the summer and is equivalent to 11 non-production days at Swindon where Honda makes the Civic model as well as the CR-V 4x4.

However, the company said that there would be no job cuts as a result of the reduction which will be carried out between January and March 2009.

Also, Honda still intends to start production of its Jazz model at Swindon in autumn 2009 as planned. Having started production at Swindon in 1986, Honda employs about 5,000 staff at the Wiltshire site.

Announcing the cut-back, Honda blamed the world economic conditions and a lack of consumer confidence for its decision to slash production.

New car sales in the UK have slumped in recent months, with even the arrival of the new 58-registration number plates failing kick-start the market in September.

Honda is the latest in a line of companies to announce production cuts.

Jaguar Land Rover has announced cut-backs at Castle Bromwich in Birmingham and Halewood on Merseyside, while Nissan is slashing production at Sunderland.

UK employees were hit this week by the announcement of job losses by Redditch car and aircraft parts company GKN.

Other car companies that have announced production cutbacks in Europe include Peugeot Citroen, Chrysler and Daimler.
UK car production actually increased in September 2009, but the Society of Motor Manufacturers and Traders has warned of tough times ahead.

The extent to which a recession can hit the motor industry is reflected in the events of the early 1990s when new car sales fell for 27 months in a row before recovering to later reach record levels.