TOKYO - JAPANESE carmakers announced more layoffs on Thursday to cope with an industry slump, with Mitsubishi Motors cutting 1,100 jobs and Subaru-maker Fuji Heavy Industries axing 800 posts.

Mitsubishi Motors, Japan's fourth biggest carmaker, said it would not renew contracts with one third of its temporary workers in Japan at the end of March as it reduces production to cope with sagging sales.

Fuji Heavy Industries said it would lay off 800 temporary workers in Japan in December, and reduce domestic production by 40,000 vehicles in the first quarter of next year.

'The global economic slowdown and the difficulties the auto industry is currently facing are the reasons for the adjustment,' a Fuji Heavy spokesman said.

'We are seeing a serious fall in orders from overseas and domestic dealers alike. We must take measures to control our inventories,' he added.

Mitsubishi Motors aims to reduce its production in the current fiscal year to March by a further 30,000 vehicles, in addition to a reduction of 80,000 announced in October, a company spokesman said.

Mitsubishi has lagged behind other Japanese automakers as it recovers from a defect cover-up scandal that badly hurt its reputation, but other carmakers are also shedding temporary workers.

Toyota Motor has said it plans to axe 3,000 jobs - half of its temporary workforce in Japan.

Nissan Motor, Japan's number three automaker, is shedding 3,500 jobs worldwide, while Mazda is scrapping 1,300 temporary jobs and truckmaker Isuzu is axing 1,400 domestic posts.

Japanese carmakers have expanded rapidly in recent years to meet brisk demand for their vehicles, but they have not been immune to the global economic downturn, even if they are in much better shape than their US rivals. -- AFP