There's no joy in Marysville, as the Honda sales slump and employment cutbacks continue.

Honda Motor is making moves to head off bigger problems in North America by offering voluntary buyouts, as well as cutting pay for some employees and shutting down plants for 13 days this year. The sales arm reported a 35% decrease in February and a 34% dive in March, compared with year ago levels.  

“There is a continuing need to reduce our inventory,” said Ron Lietzke from Honda. “Regardless of job title or level within our organization, each Honda associate will share the responsibility of doing what we must do to remain competitive.”

For the moment, the Japanese company is looking to cut production by 62,000 units this summer with the shut down. The buyouts will be offered to almost all of Honda’s 35,600 employees in the United States, Canada and Mexico, Lietzke said. The company is also offering enhanced retirement packages for selected employees. The employment reductions will hurt the already devastated mid-western economy. As recently as 2007, Honda set manufacturing records in the United States and North America.

The pay cuts are aimed at white collar workers, with top executives seeing the biggest cuts. The company declined to say how much salaries will be slashed. Hourly employees will not see any reductions, Lietzke said. (more…)