HONDA has postponed plans to build its new small car at its Swindon factory and instead will source the vehicle from Japan. The manufacturer blamed currency rates and the strength of Sterling for Tuesday's decision.

It also announced that because of the depreciation of the Euro, it would focus exports from the UK away from Europe and towards North America with the Swindon-built CR-V now being exported to the USA. Honda presently imports the Logo from Japan and a company spokesman said a new small car would still go on sale in the UK in early 2002 to replace the current model.