Lest you think that the current automotive market implosion is only affecting domestics, check this out: The AP is reporting that Honda is offering buyouts to most of its 35,600 employees in the United States, Canada and Mexico. In addition, it will also be shutting down its plants for 13 days this summer to reduce production by about 62,000 vehicles. This comes after Honda already announced production cuts of 58,000 vehicles from its Ohio plants in December last year, and an additional 29,000 in January at all of its North American plants.
The AP also reports that compensation for salaried employees will also be cut, with executives getting the biggest bite out of their paychecks. Hourly and production workers won’t feel the pinch, but bonuses will be reduced.
It’s easy to pick on the domestics, since they’re grabbing the most headlines. But the truth of it is that ALL automakers are severely affected, and even Honda, which weathers most storms in stride, is taking unprecedented lumps.
