6 Mar 2009

Car firms take measures to cope with recession

6:43 am on 6 March 2009

Major car companies in New Zealand are adopting wage and recruitment freezes as they attempt to stave off the effects of the economic downturn.

New car registrations in February were down 38.5% on a year ago as the vehicle industry continues to bear the brunt of the recession.

Toyota New Zealand chief executive Alistair Davis says the company will not be hiring new staff for the next six months and pay rises will be more conservative.

Managing director at Mitsubishi Motors New Zealand John Leighton says no-one at his company will get a wage increase this year, meaning staff will effectively take a 5% salary cut.

Meanwhile, the Motor Industry Association says car prices could rise by as much as 50% this year because of the declining value of the New Zealand dollar.