U.K. Bags Major Investments by Three Automakers

The U.K.’s booming auto industry gets another boost as three manufacturers announce major investments in a space of just five days, and Canada becoming a winner as well.

Honda, Jaguar Land Rover and the London Taxi Co. detail a combined funding of £1.05 billion ($1.55 billion) to build new vehicle models.

The Society of Motor Manufacturers and Traders says the announcements come on the back of a total of £7 billion ($10.4 billion) committed by automakers in 2013 and 2014.

The continuing renaissance in U.K. car production saw more than 1.5 million vehicles built in the region last year – an increase of 50% since 2009, and the sector’s best performance since 2007.

Honda completed the manufacturing trifecta, announcing a £200 million ($296 million) spending plan at its Swindon plant, 80 miles (130 km) west of London, which will become the global production hub for the next-generation Honda Civic 5-door.

With Honda of the U.K. Mfg. being developed into a specialist Civic production facility, the next-generation CR-V will be manufactured at Honda of Canada Mfg. in Ontario for export to Europe.

Five days before the Honda announcement, JLR unveiled a £600 million ($888 million) spending plan at its West Midlands operation and Coventry-based London Taxi revealed a £250 million ($370 million) investment – and the creation of 1,000 jobs – as it prepares for production of a new range of ultra-low-emissions taxis.

SMMT CEO Mike Hawes calls it a fantastic week for U.K. automotive.

“Honda’s decision to build its next-generation Honda Civic, a global car in an important and growing segment, here in the U.K. caps off a record six days – the first time three manufacturers have announced nine-figure investments over such a short period of time,” he says in a statement.

Honda’s flagship production facility in Europe will produce the Civic 5-door for the European market as well as other key global markets.

The investment comes as Honda continues to develop its global production network to maximize the efficiency and quality of its manufacturing operations. New investment in advanced production technologies and processes takes the automaker’s total investment in HUM to more than £2.2 billion ($3.25 billion) since 1985.

Toshiaki Mikoshiba, Honda Europe president and chief operating officer, says the announcement sends a clear message of the strategic importance the Japanese automaker places on producing cars at the plant in Swindon.

“We will continue to provide high quality products to meet the expectations of our European customers and having just unveiled four new models for the European market, we look forward with renewed optimism and purpose for Honda in Europe,” he says in a statement.