TOKYO (AP) — Toyota and Honda are starting to feel the pinch of the global slowdown at home.

Yesterday Japan's biggest automaker said it was suspending production at a third plant later this month as it tries to cope with falling demand in the US and around the world.

Toyota Motor Hokkaido Inc., a major subsidiary that makes engine transmissions, will stop all its assembly lines on December 25, company spokesman Harutoshi Fukasawa said. It will be the first work stoppage at the plant in 15 years caused by falling production.

The plant, located on Japan's northern island, makes automatic transmissions and other parts, mostly for the Corolla compact exported to the US, where Toyota's sales plunged more than 30 percent in November. The news came a day after Toyota said two other plants will temporarily suspend some production.

Meanwhile, Japan's number two automaker Honda Motor Co. said yesterday it is cutting jobs in Japan because of plunging auto demand. Honda is reducing 760 temporary workers, or nearly 18 percent of its domestic temporary work force of 4,300, at four plants, including one motorcycle plant, this month and next month, said company spokesman Hideto Maehara. It has also offered an early retirement package for workers at its plant in Britain, although the number of workers to be cut has not been disclosed.