Honda is going to start production at its Swindon plant from Monday following a four-month halt in production due to slower demand. Now, it has been reported that the workers have come to terms with a 3% cut in their salary for the next 10 months, while managers have agreed to work with a salary reduced by 5%. Production at the Swindon plant was initially stopped for two months: January and February, but the production halt extended till May.
Honda has also reduced its yearly production target at the plat to under 113,000, a sharp fall from the initial target of 228,000 vehicles. Production of Honda Jazz supermini would start at Swindon plant from September. Honda saw 16% decline in sales in April 2009 compared to the same period of last year. First quarter sales of this year were also reduced by 34% in terms of year-over-year comparison. Honda has seen some good success through its newly launched hybrid car Honda Insight in the US. So, I think, Honda should try to promote Insight hybrid car more extensively in the UK too.
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