GM Australian Unit Cuts 140 Jobs image

The Australian unit GM Holden of General Motors Co announced that it plans to cut about 140 casual and temporary jobs from its Adelaide car plant, as the high Australian dollar stems export growth.

Mike Devereux, managing director of GM Holden, declared that the high Australian dollar forced the company to trim production costs, hurting the exports.

“At the current exchange rate, we won’t be able to realize further growth in our export programmes, so the shift changes allow us to maintain production levels and do it more efficiently,” Devereux said.

A single shift will be introduced in the general assembly operations. This will reduce costs and production time for each vehicle, maintaining the production volume and keeping the company globally competitive.

Last year the company produced around 90,000 cars, 35% more than 2010. The manager explained that they will try to maintain the current production with this single shift.

“With these tough economic conditions it’s our obligation to our people, and those that invest with us, to build a sustainable business and to continuously improve productivity,” he said. “

At the current exchange rate we won’t be able to realize further growth in our export programs so the shift changes allow us to maintain production levels and do it more efficiently.”