Honda offers buyouts, cuts pay

Honda Motor Co. is offering voluntary buyouts, cutting workers’ pay and imposing 13 non-production days at its North American plants to reduce its inventory this summer by 62,000 vehicles.

Honda spokesman Ron Lietzke said Tuesday that the buyouts would be offered to most of the Japanese automaker’s 35,600 employees in the U.S., Canada and Mexico. Enhanced retirement packages are also being offered, he said.

Overall compensation will be reduced for its North American employees, with top executives experiencing the biggest cuts, Lietzke said. He would not say how much salaries would be reduced.

Bonuses will be greatly reduced or eliminated, but pay rates for production and hourly workers will not be affected, Lietzke said.

“There is a continuing need to reduce our inventory,” he said. “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.”