KAHULUI - At least four Maui employees of the Servco Pacific Inc. family were part of the companywide layoffs announced on Monday.

Servco said it is reducing its work force in response to the slowing economy by 118 employees, effective Nov. 17. In a statement, it said most of the layoffs are in the automotive division, which is the hardest hit by the economic downturn. The company employs about 1,134.

The four Maui employees affected are with the Servco Lexus Maui dealership in Kahului. A worker said two employees have already left and the other two will remain until the 17th. Two employees worked in the sales department and one each worked in the service and parts departments.

At Rex Tire & Supply in Wailuku, also a Servco company, a worker said he didn't know of any layoffs.

Managers at both Maui businesses referred questions to a Servco marketing manager on Oahu. Paul Lam, Servco marketing manager, sent out a general release about the layoffs and said that nothing further will be said. The release said employees were given "generous severance packages" and that company managers also met with the employees who remain at their jobs.

In Hawaii, Servco represents Chevrolet, Suzuki and Subaru and is the distributor and retailer of Toyota, Lexus and Scion vehicles in Hawaii. The company also distributes home products and has divisions in insurance and private equity investments. Maui Toyota is not affiliated with Servco, although it carries Toyota and Scion vehicles.

"To those of you who will be laid off, let me first say how deeply sorry I am that this has happened," wrote Mark Fukunaga, Servco chairman and chief executive officer, in a memo to the company employees. "I hope you know that we tried to do everything possible to avoid this action."

According to the company's statement, it initiated a hiring freeze and reduced other expenses in April. But the economic crisis accelerated, forcing the decision to reduce staff. Servco said projections for new car sales at all Hawaii car dealerships are for a 30 percent drop in sales, to 42,000 this year from a high of 66,000 vehicles three years ago.

Severance for the 40 unionized employees is subject to their collective bargaining agreement. The other 78 employees affected will receive a minimum of three months' salary, with additional credit based on years of service.

* Melissa Tanji can be reached at mtanji@mauinews.com.