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Friday, Dec. 5, 2008

Honda cuts more jobs; Toyota to halt output

Compiled from Kyodo, AP

Honda Motor Co. said Thursday it will lay off another 490 temporary employees by the end of January to cope with faltering sales worldwide.

Toyota Motor Corp.'s Hokkaido unit meanwhile said it will temporarily cease production at its plants in light of weakening demand.

Honda's announcement of additional job cuts came after the company said last month it will cut about 270 temporary employees at its Sayama plant in Saitama Prefecture by the end of the year by not renewing their contracts.

The additional 490 workers will be reduced at the Sayama plant and at other factories in Tochigi, Shizuoka and Kumamoto prefectures, Honda said.

As of the end of November, Honda employed about 4,300 temporary employees.

Toyota Motor Hokkaido Inc. said it will cease production at all five of its factories in Tomakomai, Hokkaido, on Dec. 25.

It will also stop some production lines for components used in the Corolla and other cars for export on Saturday and on Dec. 13, 20 and 26.

It will be the first time in 15 years for the firm to close plants to cut production.

On Tuesday, Toyota said its sales in the United States tumbled 34 percent in November, including a 35 percent slump in its Lexus luxury line.

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