Isuzu, Mazda Cut 2,700 Jobs as Vehicle Demand Falls

[ben_meyers]

Source: Bloomberg

Nov. 20 (Bloomberg) -- Isuzu Motors Ltd. and Mazda Motor Corp. will slash at least 2,700 temporary jobs in Japan as the companies reduce vehicle output because of falling demand. The stocks slumped.

Isuzu will terminate 1,400 temporary and part-time workers' contracts by the end of the year and cut one shift at a truck plant in Fujisawa, Japan from next month, said spokesman Naoki Ariizumi. Mazda will cut 500 workers at its factory in Yamaguchi prefecture, and 800 workers at its plant in Hiroshima prefecture, said spokesman Toyota Tanaka.

The yen has gained 17 percent against the dollar and 36 percent against the euro this year, eroding the competitiveness of the carmakers' exports. Tokyo-based Isuzu's sales in Thailand, its biggest overseas market, plunged 30 percent in October, the fifth straight monthly decline, and Mazda's sales in Western Europe tumbled 12 percent.

``With the macroeconomic environment's very drastic downturn, cutting temporary workers is the easiest and quickest measure to take'' to cut labor costs, said Hirofumi Yokoi, a Tokyo-based analyst at automotive consulting company CSM Worldwide. ``In truth, I'm sure the carmakers need and want to cut full-time workers as well.''



Read more: http://www.bloomberg.com/apps/news?pid=20601087&sid=azloNSNak3uw&refer=home

---

Isuzu and Mazda CEO's were seen boarding private jets for the flight to Washington DC.

[Hannah Bell]

1. It's hard to keep up, but last time I checked GM owned 20% of Isuzu,

& it wasn't making much for the US market.

Ford once owned at least 1/3 of mazda (70s-2000s), & has just announced it's selling some of it "back".

Who are the "competitors"?

[david_vincent]

2. Isuzu no longer sells vehicles in the U.S.

This was in the news several months ago. They publicly blamed GM for not supporting sales of Isuzu vehicles and, if memory serves, GM fired back publicly as well, so it seems there's bitterness between them.