WEDNESDAY, SEPTEMBER 05, 2001
Japan's auto industry may cut 140,000 jobs
TOKYO: More than 140,000 jobs in Japan's auto industry may go by 2005 as firms struggle to boost efficiency and increase profits amid a prolonged global economic slump, said a major car union on Tuesday.
"We estimate 143,000 jobs could go by the end of 2005 through natural attrition as companies cut back on hiring new staff or replacing old employees who retire or choose to leave," said policy bureau chief of the Confederation of Japan Automobile Workers' Unions, Yoshiro Sato.
The predicted job cuts represent 18.8 percent of the total auto industry workforce. Around 761,600 people currently work in Japan's automobile industry, Sato said.
"Times are very tough for automakers at the moment because of intense competition from abroad and the impact of the sluggish global economy."
The confederation, made up of unions from Japan's major car makers including Toyota Motor Corp. and Nissan Motor Co., conducted a year-long study into Japan's auto industry from last September.
On top of probable job cuts, they estimated production would drop by 10 percent and domestic sales would slide 8.3 percent if the worldwide downturn continued.
Japanese automakers would produce nine million cars in 2005, down 10 percent from the number currently produced per year, while annual sales in Japan would slump to 5.5 million vehicles by 2005 from six million at present, it estimated. Overseas sales would decline 12.5 percent to 3.5 million autos.
Car part makers would be hit hardest by the industry contraction, with the confederation forecasting 116,500 of the 143,000 job cuts would come from the sector.
In the light of the survey, Sato called on Japan's automobile unions to devise methods to protect its workers, including possibly calling on the government for help.
"We are asking the different unions to come up with ideas about what best to do to fight the slowdown," he said.
"We are also going to ask the government for help, or at least ask them what they think should be done to boost the industry."
Restructuring plans advocated by foreign shareholders in Japanese automakers will add to the job losses.
Number two automaker Nissan -- 36.8 percent owned by France's Renault -- has said it would shed 21,000 jobs over the next few years and shut five plants in Japan, while Mitsubishi Motors Corp. said in February it would cut 9,500 jobs or 14 percent of its total workforce.
The troubled car firm, 37.3 percent owned by German-US auto giant DaimlerChrysler, is implementing a tough reform plan in a bid to achieve profits after suffering its biggest ever group loss of 278 billion yen (%2.3 billion) for the year to March.
Similarly Japanese truck maker Isuzu Motors Ltd., controlled by 49 percent-shareholder General Motors, will axe 9,700 jobs in three years due to a slump in sales. ( AFP )
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