Recession hit Honda cuts output by 50,000

New York, Jan 27: Honda motors announced its decision to cut down production in Japan and North America by an additional 50,000 vehicles amid a low sales as market is hit by ongoing global recession. No 2 automaker of Japan said that the output in North America will fall by 29,000 units. This will affect three plants of Honda in that region that is Ontario, Canada; Marysville/East Liberty, Ohio; and Lincoln, Alabama.

The cut in production will reduce Honda's overall output in North America by 12 pc to 1.26 million units in the current fiscal year ending March 31.

Yasuko Matsuura, the Honda spokeswoman said, "Amid a severe economic slowdown, our sales remained sluggish. We have to adjust our production accordingly. We have yet to see a recovery in the auto market."

Honda have also decided to cut domestic production by a further 21,000 units. After this company's output in Japan will now stand at 1.15 million units down 12 pc year-on-year. Hit by recession Honda has earlier pull out from Formula One racing in Dec to focus on its core business of making and selling cars. Honda is also putting 4,300 contract staff out of work in Japan by the end of April.

Honda employs 185,000 full-time people around the world.

OneIndia News (With inputs from Agencies)