Honda says that as it reduces production in North America – by about 62,000 vehicles this summer – it will also be forced to offer voluntary buyouts, reduce executive salaries and bonuses and cut down the number of production days.
Honda will add 13 non-production days to its already-tightened schedule, which means that production forecasts will be cut by about 62,000 additional vehicles. Workers will be able to choose whether that time counts as part of their paid vacation or they can take no pay.
Top executives in North America will experience the biggest pay cuts, though many employees across the board will see reduced compensation. The automaker didn’t give any specific figures, but it did say that bonuses would be greatly reduced or eliminated. Production and hourly workers will not see pay level changes, however.
The automaker is also offering buyouts to most of its 35,600 workers. A Honda spokesman told the Associated Press that the retirement packages will be improved to incentivize more workers to retire from the company.
