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GM Holden axes workforce in Australia

ADELAIDE, Australia - GM Holden, the Australian unit of General Motors, plans to cut 1,400 jobs – or 15 per cent of its workforce – from its South Australian vehicle assembly plant by Christmas and eventually cut its workforce there to about 4,300 by mid-2006. It says the cuts are designed to ensure its long-term future in Australia as a vehicle producer in the face of rising costs and fierce competition. The move will return daily production levels to about 620 cars, down from the current 800 units.

The chairman and managing director, Denny Mooney, said the decision was difficult, but the right one to ensure Holden's long term future. "We need to act because the local market and exports are changing. We are oversize for what we need in coming years and we have to protect our future in Australia."