This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.

You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/7975920.stm

The article has changed 2 times. There is an RSS feed of changes available.

Version 0 Version 1
Honda makes cuts in North America Honda makes cuts in North America
(about 2 hours later)
Honda has announced a sweeping programme of cost cutting measures in North America as it continues to struggle with a slump in sales.Honda has announced a sweeping programme of cost cutting measures in North America as it continues to struggle with a slump in sales.
The measures include cutting pay, closing factories for 13 days and reducing production by 62,000 vehicles.The measures include cutting pay, closing factories for 13 days and reducing production by 62,000 vehicles.
Bonuses will be cut and improved retirement packages will be offered, but basic pay will remain unchanged.Bonuses will be cut and improved retirement packages will be offered, but basic pay will remain unchanged.
Official figures showed on Tuesday that Honda's sales in Japan during March were down 24.5% from a year earlier.
But other Japanese carmakers are suffering from bigger slumps.
Sales at Toyota, the world's biggest carmaker, fell by 31.9% in March, excluding the Lexus brand, according to the figures from the Japanese Automobile Dealers Association.
The company is implementing cuts in the UK, starting on Wednesday. Employees will see their working hours and, therefore, basic pay cut by 10%, as agreed last month.
Sales of Nissan fell by 33.5%, while those of Mazda fell by 36.3%.
Overall sales of Japanese cars and trucks, excluding small engined mini vehicles, fell 31.5%.
'Shared responsibility'
"There is a continuing need to reduce our inventory," said Honda spokesman Ron Lietzke."There is a continuing need to reduce our inventory," said Honda spokesman Ron Lietzke.
"Regardless of job title or level within our organisation, each Honda associate will share in the responsibility of doing what we must do to remain competitive," he added."Regardless of job title or level within our organisation, each Honda associate will share in the responsibility of doing what we must do to remain competitive," he added.
Low confidence
Honda employs more than 30,000 workers in the US.Honda employs more than 30,000 workers in the US.
Earlier this year, the carmaker announced 3,100 job cuts and reduced production by 56,000 vehicles in Japan.Earlier this year, the carmaker announced 3,100 job cuts and reduced production by 56,000 vehicles in Japan.
It has also closed its production plant in the UK for four months.It has also closed its production plant in the UK for four months.
Toyota, the biggest carmaker in Japan, has also announced production cuts at several North American plants in order to reduce significantly its stock of cars.Toyota, the biggest carmaker in Japan, has also announced production cuts at several North American plants in order to reduce significantly its stock of cars.
But it is not just the car industry that is suffering in Japan.But it is not just the car industry that is suffering in Japan.
The Bank of Japan's quarterly Tankan survey of more than 10,000 Japanese companies is closely watched as a key indicator of the health of the country's economy.The Bank of Japan's quarterly Tankan survey of more than 10,000 Japanese companies is closely watched as a key indicator of the health of the country's economy.
The latest Tankan survey, released on Wednesday, indicated that business confidence among major manufacturers in Japan has tumbled dramatically, hitting the lowest level on record.The latest Tankan survey, released on Wednesday, indicated that business confidence among major manufacturers in Japan has tumbled dramatically, hitting the lowest level on record.