Honda Motor Co. said it will stop paying furloughed workers at all of its 10 factories in the U.S. for three weeks as the coronavirus roils the economy.
Those affected won’t receive salaries from April 13 to May 1, making them eligible to get unemployment benefits from local authorities, said Teruhiko Tatebe, a Honda spokesman. The company, whose sales in the U.S. tumbled 48% last month, has suspended its U.S. plants since March 23.
(Also read: Honda Cars taking steps to help dealers, customers amid lockdown)
Millions of Americans are expected to file for unemployment for a third straight week when figures are released on Thursday, according to the median of estimates compiled by Bloomberg.
Nikkei reported earlier that the automaker is planning to furlough about 10,000 U.S. workers. Honda declined to specify how many workers it’s laying off.
This story has been published from a wire agency feed without modifications to the text.