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Honda Offers Voluntary Buyouts, Cuts Pay and Production in North America

COLUMBUS, Ohio March 31, 2009; Meghan Barr and Dan Strumpf in New York handwriting forthe AP reported that Honda Motor Co. is immolation free buyouts, cuttingworkers" recompense and grand 13 non-production days at its North Americanplants to cut back its producing this summer close by 62,000 vehicles.

Honda spokesman Ron Lietzke said Tuesday that the buyouts desire beoffered at most of the Japanese automaker"s facilities in the NorthAmerica, where it employs 35,600 people. Sweetened retirement packages arealso being offered, he said.

Overall compensation desire be reduced representing its North American employees,with summit executives experiencing the biggest cuts, Lietzke said. He wouldnot conditions how much salaries would be reduced.

Bonuses desire be greatly reduced or eliminated, but recompense rates forproduction and hourly workers desire not be affected, Lietzke said.

"There is a continuing order to cut back our inventory," Lietzke said."Regardless of labour name or even within our organization, each Hondaassociate desire portion the accountability of doing what we ought to do to remaincompetitive."

The companionship builds Honda Accords and Acura TLs and RDXs in Marysville,Ohio; Honda Civics and Elements at a works in East Liberty, Ohio; andengines and other components in Anna, Ohio. The companionship also has a flower inLincoln, Ala., that makes the Odyssey minivan, Pilot recreation utility vehicleand V-6 engines. It also builds transmissions in Tallapoosa, Ga., andbuilds all-terrain vehicles, lawnmowers and other products in the U.S.

Between May and July, the 13 non-production days desire embody up to twodays per month on which employees can"t move ahead into work. They can choose toeither defend that period with vacation or grip no pay.

In Mexico, Honda desire hold up producing representing 13 days between May andSeptember at its flower in western Jalisco state, but doesn"t planreductions amongst the 1,800 workers at the facility, said companionship spokesmanJavier Gonzalez. The flower produces the CR-V duplication and exports much of itsproduction to the United States.

The Tokyo-based automaker has been rigorous auto producing aggressivelyin North America in late months in an attempt to drop inventories ofunsold cars. In December, it said it was removing 119,000 vehicles fromproduction representing the financial year ending Tuesday and it cut producing evenfurther in January.

Spokesman Edward Miller said the companionship produced circular 1.3 millionvehicles in North America during the 2008 financial year. Miller declined toprovide a producing or sales goal representing financial 2009.

Honda has not been inoculated to the troubles plaguing the broader autoindustry, brought on close by the downturn in consumer confidence and the lockupin the belief markets. The automaker"s U.S. sales are down close by circular a thirdfor the first two months of the year.

In February, Honda announced it was replacing its chief chairman of the board andreshuffling its board of directors in a proffer to furnish freshleadership.

Still, the companionship is faring higher than its Detroit-based counterpartsand is counting on attention in its smaller, fuel-efficient vehicles topropel a rebound. Earlier this year, Honda unveiled its new Insight hybrid,which desire be priced beneath $20,000 when it arrives in the U.S. in thecoming weeks and is expected to contend head-on with competitor Toyota MotorCorp."s Prius.

Toyota, Honda"s chief rival, hindmost month took like moves in the U.S.,announcing cuts to production, chairman of the board compensation and immolation buyoutsto circular 18,000 workers. Both automakers be obsessed said they are seeking toavoid layoffs -- an extremely rare custom at Japanese companies, whichhave a cultivation of lifetime employment.