Holden axes 170 jobs from its Elizabeth manufacturing plant in South Australia
Workers who apply for redundancy will finish up on December 14
Reduction in demand for Australian-built models leads to job losses
Holden says cutbacks unrelated to shutdown of major parts supplier Autodom
The cuts follow the loss of 100 jobs in February and industry analysts warn more cutbacks are likely over the next five years as Holden scales back production because of falling demand.
Workers who apply for redundancy will finish work on December 14, when the factory closes for the summer break, but redundant workers will be paid through the holiday period.
The latest cuts, about 8 per cent of the workforce, come as Holden faces its worst sales period in 19 years and despite a $275 million government grant.
They will bring the number of workers to just under 2100.
Falling demand for the small Holden Cruze hatchback model has led to job cuts. Picture: Martin Dean
Holden says it is not planning "any further redundancies any time soon".
"However, it's critical to the long-term health of Holden that we're able to be responsive to the market and to align production with demand," spokesman Craig Cheetham said.
"The responsible thing to do is to take action to make sure we have viable manufacturing operations in Australia, which is something we intend to do for the next decade."
South Australian Manufacturing Minister Tom Koutsantonis played down fears the Elizabeth plant could shut down completely.
He described the 170 job losses as a "hiccup' because Holden was not selling as many vehicles.
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