Honda has been in the UK for 17 years

The move comes as the Japanese company begins its first pay talks with unions since it began making cars in Britain 17 years ago.

Honda needs to lift workers' retirement age in order to boost its pension fund, which has a �40m deficit.

The group is also closing its final salary pension scheme to new entrants for the next five years and asking employees to increase their contributions.

Sign of the times

Honda is thought to be the first major employer in the UK to try and raise the age at which its staff can retire.

The group also wants to impose a 2.2% pay rise on staff, according to a report in The Times, below the current inflation rate of 3%.

The 4,000 Honda workers at the plant in Swindon are being urged to reject the proposals by Amicus, the largest private-sector union.

But the Amicus union argued that the increased pension contributions equated to a pay cut at a time when Honda was not even increasing wages in line with inflation.