Honda to cut 760 jobs in Japan: Spokesman

TOKYO: Honda Motor will cut 760 temporary jobs at its domestic plants by the end of January due to weak demand in North America and Europe, a spokesman said Thursday. Honda president Takeo Fukui said there may be more job cuts next year among the number two Japanese automaker's roughly 4,000 temporary domestic workers.

The cuts are the latest in a series of layoffs by Japanese automakers which are reducing global production in response to sharp declines in demand. Honda may have to further reduce production in addition to cutbacks already announced, Fukui told reporters at a new car launch.

Japanese manufacturers have expanded rapidly in recent years to meet brisk demand for their smaller, fuel-efficient cars. But they have not been immune to the global economic slump, even if they are in much better shape than their US rivals, whose bosses were due to return to Congress later Thursday to beg again for aid from the US government.

Fukui said he expected the Big Three US carmakers to get financial support to enable them to overhaul their businesses. "Such a support will be a measure to help them improve their businesses on their own. They should not expect easy support," he said.

Japanese automakers in the 1980s were caught in a trade dispute between Japan and the United States over the huge US trade deficit, prompting Japanese manufacturers to build more US plants rather than exporting cars. Fukui played down the prospect of a fresh row if Japanese carmakers continue to grab market share from the ailing Big Three.

"With Honda's policy of producing locally for local demands, I think we will get understanding even if there are political challenges," he said.