Honda Moto Co. which employs more than 30,000 workers in the US has announced a sweeping programme of cost cutting measures in North America as it continues to struggle with a slump in sales.
Honda, who have assembly plants in Indiana, Ohio and Alabama in the United States, as well as in Canada and Mexico said the measures would include cutting pay, closing factories for 13 days and reducing production by 62,000 vehicles.
Official figures showed on Tuesday that Honda’s sales in Japan during March were down 24.5% from a year earlier but the slump was not as bad as other Japanese carmakers.
The company is also implementing cuts in the UK and employees will see their working hours and, therefore, basic pay cut by 10%, as agreed last month.
“There is a continuing need to reduce our inventory,” said Honda spokesman Ron Lietzke.
“Regardless of job title or level within our organisation, each Honda associate will share in the responsibility of doing what we must do to remain competitive,” he added.
Earlier this year, the carmaker announced 3,100 job cuts and reduced production by 56,000 vehicles in Japan and also closed its production plant in the UK for four months.