Mazda Motor Corp. said Tuesday it will implement a uniform 10 percent pay cut for all its 25 directors on the board for one year from March.
Mazda President Mark Fields told employees at the company's facility in Yokohama that the management must also share the pain of the firm's financial problems.
Under its restructuring plan, Mazda aims to cut 1,800 jobs. It will start an early-retirement program in the middle of this month.
With the planned pay cut, the troubled carmaker intends to make clear the top management's responsibility for its deteriorating business performance, Fields said.
Mazda, which is 33.4 percent owned by Ford Motor Co. of the United States, has already decided to implement a 15 percent pay cut for some directors, in addition to the 10 percent cut.
Mazda officials, meanwhile, said the firm may consider adopting diesel engines developed by French automaker Peugeot S.A. for its new cars scheduled to be released between 2002 and 2003.