Honda suspends 700 Thai workers

8220;We asked them to stop working and standby at home,8221; he said. 8220;The global situation is unfavourable for us to boost production as fast as we initially planned.8221;

Honda, Japan8217;s No. 2 carmaker, currently produces about 140,000 units a year at its two plants in Thailand. It employs more than 4,000 staff, including contract workers.

8220;We have not cut production, but it will take time to boost production. Next year depends on market conditions,8221; he said of the target for 240,000 units a year.

Thailand, the world8217;s biggest producer of one-tonne trucks and an exporter of vehicles to the Asia-Pacific region, is expected to produce 1.4 million units this year. Some analysts expect that figure to drop to 1.2 million units in 2009.

Thai auto sales fell for a sixth consecutive month in November, and analysts expect further weakness in the months ahead as consumer confidence plumbs record lows.

Automakers everywhere are reeling from a sharp downturn in sales due to a global recession and tight credit.

Last month, General Motors Corp and Toyota Motor Co said they planned production cuts in Thailand, the latest move by global automakers seeking to slash costs.