Honda to cut production and pay in North America

Hit by a sharp downturn in sales, Honda announced today that it will cut production in North America by 62,000 units. The move will shut down factories for 13 days in May. Honda also said that it will cut pay for salaried and factory workers and will offer buyouts and early retirement incentives for 32,400 workers in the U.S. and Canada.

Honda said that it will not be paying hourly workers for 6 of the 13 days which will be scattered between May 1 and July 31. Previously Honda and Toyota continued to pay nonunion workers even when it shut down factories.

Spokesman Ed Miller said that salaried workers will see their compensation reduced in the new fiscal year.

Honda did not provide production or sales forecast for the new fiscal year.

– By: Omar Rana

Source: CNNMoney