Honda says it plans to close its car factory in western England in 2021, with the potential loss of 3,500 jobs.
The Japanese automaker made the announcement at a news conference Tuesday in Tokyo. It said the change reflects a global restructuring of its manufacturing.
The decision was a fresh blow to the British economy as it faces its exit from the European Union on March 29. Honda makes its popular Civic model at the factory, 115 kilometers (70 miles) west of London, with an output of 150,000 cars per year.
British businesses are issuing increasingly urgent warnings about the damage being done by the uncertainty around Brexit. The UK has yet to seal a deal laying out the divorce terms and establishing what trade rules will apply after Brexit.