Mitsubishi Motors to halt Japan office operations

Mitsubishi Motors Corp., the maker of Lancer sedans, will suspend office operations in Japan for as many as six days this fiscal year to cut work hours along with planned production halts as the global recession saps car demand.

The company plans to pay workers 80 percent of their daily wages on non-operating days, Fumio Nishizaki, a spokesman, said in a telephone interview today.

It will be the first companywide suspension for Tokyo-based Mitsubishi Motors since it separated its truck division in 2003. Japanese automakers are cutting production, as rising unemployment and weak consumer confidence have crippled car demand in the U.S., Japan and Europe.

Mitsubishi Motors posted a 49 percent drop in U.S. sales and a 32 percent tumble in Japan sales in the three months ended March 31. In response, the company will halt production at its three domestic factories for as many as eight extra days this month, it said on March 28.

Nissan Motor Co., Japan's third-largest automaker, will also set non-operating days for office workers on April 28 and May 6. Suzuki Motor Corp., Japan's second-largest minicar maker, began setting non-operating days for office workers in Japan in February.