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.
04/01, 9:50 AM
posted by:
christianboy10
more bad news from honda
04/01, 9:53 AM
posted by:
zfenderguy
At leats they are not cutting base pay at the lower levels. I think that is a great idea, in spite of the general bad news in this article
04/01, 10:36 AM
posted by:
moparsalesman1
@zfender
give it time its only a matter of time
04/01, 11:02 AM
posted by:
johnnycanuck
Golly gee, maybe it’s not just the D3 who are in trouble? Run Lassie, the auto industry has fallen down the well. Go get help!
04/01, 11:04 AM
posted by:
mayer_ray_nagin
the UAW is sniffing opportunity here.
04/01, 11:16 AM
posted by:
gta89mike
It is an industry wide problem, whether it is domestic or foreign. Check out this article about Toyota City in Japan – sounds just like Detroit.
http://www.latimes.com/news/nationworld/world/la-fg-toyota-city22-2009mar22,0,6539982.story
04/01, 12:02 PM
posted by:
yarddog82abn
@ mayer_ray_nagin
“the UAW is sniffing opportunity here.”
You can say that again…
04/01, 12:49 PM
posted by:
Impulsive
‘mayer’, the only opportunity is to amalgamate the new group of suckers who are willing to work for $15/hour instead of $30+.
Unions will become paper tigers.
04/01, 12:51 PM
posted by:
Borat
This is global recession, now most of them are, as we live in global economy.
If recession is natures way to weed out the weak, then this one may be different. Depending which government will have desire to prop non-performing company, non-performers may survive and those who claw their way up in spite all odds may not. That is why government intervention is so distasteful to those of us who value democracy. I viewed Honda as one of those companies who clawed their way up despite their own government’s efforts to restrict their business activity. I hope Honda will make it.
04/01, 2:37 PM
posted by:
leftwingagenda
borat, i don’t think you mean “democracy” as much as “free market economy”…you want companies to be able to thrive, and also fail, depending on market conditions…not for weak companies that teeter on the edge to get a hand out from the Fed…
of course, the caveat to that argument is you need some Fed to intervene when a company becomes “too big to fail” like AIG, or Citigroup, as the damage from watching one of those giants collapse is potentially a lot worse than what we’ve already faced (great depression-like runs on more banks, etc.)…in a totally unregulated free market, you allow juggernauts to form in the absence of oversight, which ends up hurting your economy in the long run…
04/01, 4:39 PM
posted by:
jackjimturkey
I’m dissapointed in Honda
the new DN-01 has an AUTOMATIC TRANSMISSION
04/01, 5:06 PM
posted by:
Borat
leftwingagenda, I believe that “to big to fail” is a misnomer used for banks. AIG got that status because it insured banks. Lehman Brothers was huge bank and government let it go down. Why? It was pure play commercial bank (and had no political clout in DC). In reality, all banks are instruments of state. State prints money and banks distribute those. Banking laws are strict (when enforced) and state guarantees bank’s deposits. So what the difference if bank fails or government make payments on deposits it already guarantees?