The struggles of GM and Chrysler have been making headlines, but the entire industry has been hit with a near catastrophic decline in new car sales. That includes the once indefatigable Honda, with 2009 sales so far down more than 30% versus the first two months of 2008. In the wake of those sobering sales statistics, Honda is looking to cut pay and production in North America.
Automotive News is reporting that Honda will cut production by 62,000 units during the company's fiscal first quarter. The reductions will be achieved by shuttering plants for 13 days starting in May. Honda has traditionally paid its hourly workers even when plants were down, but this time workers won't be compensated for six of the days.
Honda will also cut salary and hourly pay in 2009, and reduce or eliminate bonuses. Honda also took the extraordinary step of offering buyouts to many of its 32,400 workers in the US and Canada. The auto industry is officially in the tank when Honda starts cutting production and pay, while simultaneously offering buyouts to most of its workforce.
[Source: Automotive News - Sub. Req.]
Automotive News is reporting that Honda will cut production by 62,000 units during the company's fiscal first quarter. The reductions will be achieved by shuttering plants for 13 days starting in May. Honda has traditionally paid its hourly workers even when plants were down, but this time workers won't be compensated for six of the days.
Honda will also cut salary and hourly pay in 2009, and reduce or eliminate bonuses. Honda also took the extraordinary step of offering buyouts to many of its 32,400 workers in the US and Canada. The auto industry is officially in the tank when Honda starts cutting production and pay, while simultaneously offering buyouts to most of its workforce.
[Source: Automotive News - Sub. Req.]
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