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Honda Cuts North American Production and Salaries

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Hard times aren’t only hitting GM and Chrysler, even Honda is being hit hard during this economic downturn.

Honda has announced that it will cut production in North America by 62,000 units by shutting down factories for 13 days starting in May. In addition the automaker is going to cut pay for salaried and factory workers. Honda has also offered buyouts and early retirement incentives to most of its 32,400 workers in the United States and Canada.

Previously Honda, just like Toyota would pay its workers even when it shut down its factories to reduce inventories. This time Honda claims that hourly workers will not be paid for 6 of the 13 days. Salaried workers are also going to see their paychecks reduced. Bonuses to both hourly and salaried workers are also being reduced or eliminated.

Full Story: Reuters