JAPANESE car manufacturer Honda is reassuring fleets that production cuts at its Swindon car plant are a 'short-term measure' as it prepares for a new model launch this year.

Production at the plant has dropped from 114,500 a year to 100,000, mainly due to poor sales of the five-year-old Civic in Europe - UK sales are up 27% - and installation of a new production line for the new Civic. Staff numbers will increase by 1,000 to 4,100 when the new Civic begins production this year, while Honda is also investing in a new Swindon plant to build to replacement to the newly-launched Logo.