Mazda Cuts Down Production in Japan and Reduces Pay for White-Collar Workers

Following on its December 12, 2008, announcement, Mazda has announced further cuts in production at its Japanese plants in a bid to cope with slowing demand in global car sales. In addition to other measures that include 1,500 job cuts and the elimination of the night shift from the Hiroshima Plant's Ujina Plant No.2 (U2) and the Hofu Plant's Hofu Plant No.2 (H2) in February, Mazda plans to suspend production on Fridays in February and March at both the Hiroshima and Hofu plants. Furthermore, the Japanese automaker said that it would reduce its managers' monthly salaries by an undisclosed amount from this month onwards.

"In response to the continuing deterioration in global market conditions, these actions are being taken to manage inventory levels and maintain an appropriate balance in production supply. Mazda will continue to monitor unpredictable market conditions and will swiftly respond with appropriate measures going forward," said Mazda in a statement.