In another blow to the Australian automotive industry, GM Holden has announced plans to cut production by an additional 25 days, spread across the first three months of 2009. The closures will occur at the company’s Elizabeth plant in Adelaide.
Adelaide has already seen the closure of Mitsubishi’s local production this year, while Holden’s 3,400 workers in South Australia are not new to non-production days, having already had several days off in recent weeks, the news is not promising.
According to sources the cut in production days is a result of slowing demand for Holden’s cars amid the global economic crisis. The 25 days of production loss will mean Holden will make 15,000 fewer cars while its workers will make do on four-and-a-half days’ pay per week during the three month period next year.
“We always say there’s no guarantees in the car industry but what we have preferred to do is introduce these extra non-production days rather than remove jobs, we think our workers clearly prefer this as well. We’re committed to maintaining and manufacturing presence at Elizabeth and confident into the future.” Holden official Andrea Matthews said.
Holden’s rival, Ford, is also expected to make similar moves as the new Falcon has failed to improve sales. The blue oval is expected to announce an extra week off over the Christmas period.
The only manufacturer which seems to be dealing by the current slump in large car sales is Toyota, which says no production shutdowns are planned. However even the Big T concedes there is a chance its workers may have a longer break next Easter.
Do you believe either Ford, Holden or Toyota will shutdown local production next year?