Thousands of Japanese car workers will soon draw part of their pay from the government under a scheme to prevent redundancies at companies hit by production cuts.
Mazda and Mitsubishi Motors, respectively Japan’s fifth and sixth biggest carmakers, have applied for the employment adjustment grants, according to industry officials, and others may follow soon.
The grants are available to struggling manufacturers of all types but the particularly sharp downturn in the car sector, combined with a recent expansion of the programme, has made carmakers eligible for large levels of support.
Mitsubishi, for example, plans to build passenger cars at its main plant in Okayama prefecture on just seven days next month. On the other 14 weekdays, the plant’s 3,000 full-time workers will stay at home but receive 85 per cent of their wages, half of which will be paid by the government.
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