Honda and Nissan are reported to be extending the shutdown of their U.S. production plants as the global economy remains at a standstill,media reported. Now, as a result, the two companies plan to cut 10,000 jobs at each U.S. plant, according to The Nikkei. Honda’s U.S. operations have been stagnant since March 18 and plan to restart production on May 1. Nissan said its plant would be closed by the end of April.
A Nissan spokesman told the media that “the company is implementing temporary layoffs to help manage the business of reduced activity.” Affected employees will be eligible to apply for government support such as an increase in unemployment benefits. “
The carmaker has paid full wages since Honda began its shutdown, but it will reportedly stop paying wages from Sunday. Honda did not comment directly on the layoffs.
Nissan has plants in Tennessee and Mississippi, while Honda’s main manufacturing facilities in the U.S. are in states such as Ohio and Alabama.
But the current pandemic of the new corona virus has not brought car purchases to a complete halt: some carmakers are responding to the ongoing outbreak by buying cars online and delivering them to their homes.