Servco Pacific Inc. will lay off 118 employees, about 10 percent of its workforce, effective Nov. 17.

The cuts mostly affect Servco's automotive division, reflecting slumping sales.

In Hawaii, Servco sells Chevrolet, Suzuki and Subaru vehicles and is the distributor for and retailer of Toyota, Lexus and Scion vehicles.

In a memo to employees, Chairman and Chief Executive Officer Mark Fukunaga wrote, “;I hope you know that we tried to do everything possible to avoid this action.”;

With lower sales and less work, the layoff decision was made “;with heavy hearts but also with the long-term needs of the business in our minds.”;

Employees to be laid off include 40 unionized workers, who will receive severance in accordance with their contracts, as well as 78 nonunion employees. They will receive 8 days of pay for each year worked, up to 10 years of service, and three weeks' pay for every year beyond 10 years.

The Hawaii Automobile Dealers Association's Auto Outlook recently projected that new car sales statewide could drop to 42,000 this year from a high of 66,000 three years ago.

The auto industry this week posted its worst monthly U.S. sales figures in 25 years. General Motors had a 45 percent drop; Chrysler LLC 35 percent; Ford Motor Co. 30 percent; and Toyota Motor Corp. and Honda Motor Co. were each down more than 20 percent, according the news service reports.