When Honda announced 800 job losses at Swindon the company blamed declining markets in Europe for their problems. Unfortunately this appears to be a severe case of spinning the news. The largest market in Europe is Germany where 3 million new cars were purchased in 2012 which was broadly the same number as for 2011. In this the most important of markets Honda has been in decline for some years.

Last year the company could only capture 0.9 per cent of the total market - that is a dreadful indictment on their ability to appeal to German buyers. About one third of the cars that these German buyers purchase are made overseas so the market is very open to imports. Had Honda captured 2 per cent of the market it would have led to a further 25,000 cars from Swindon finding a new home, thus avoiding the job losses. But Germany is not the only important market where Honda is in decline. Its market share in the UK is shrinking and its performance in France is dreadful. Taken together these are the three key European markets. Blaming their woes on the financial downturn in the Eurozone is spinning a very troubling situation.

Despite their legendary reputation for reliability Honda seems to have completely lost the plot in Europe that spells serious trouble for Swindon. In their desperation to drum up custom in Germany they currently have a promotion on the 1.4 petrol Civic which is up for grabs in SE kit level for a tad over £12,200 on the road. The price has been slashed by £4000 until the end of March. In Spain they have a promotion on the new 1.6 diesel with almost ES kit levels for £15,800 including a 5-year guarantee and some other bits and pieces. It certainly looks as if the new Civic has bombed in key European markets that leaves Honda nowhere to hide. The individuals who signed off on a car with such dreadful rear visibility were betting the house on buyers choosing function over form. The magic seats are terrific but they come at a price of torsion beam instead of multi-link rear suspension. This is a terrible betrayal of the sporty handling that earlier Civics offered. It also goes against the trend and means that in any comparison test against Focus or Golf it will come third.

The immediate future looks very grim, and irrespective of further financial woes in the Eurozone, Honda seems to have the wrong product mix. I have driven Honda cars for longer than I care to remember, so this situation gives me no pleasure whatsoever. Swindon will not survive if the current situation persists. The new smaller SUV on the drawing board is two years too late. I wonder how long it will take Honda before they replace senior management in Europe?