Holden to reduce car production
Holden to reduce car production

Car maker Holden will reduce production at its Elizabeth assembly plant in South Australia, stopping work for a "small number" of days between now and the end of year.

The company says the move is in response to market demand and it plans to use the down time to carry out upgrades to its Adelaide plant as well as maintenance and engineering work.

"We worked closely with our senior employee representatives to identify the most appropriate days," Holden said today.

"These market response days represent less than four per cent of Holden's total production for 2012 and are a common measure for aligning production with demand in a competitive marketplace.

"It is crucial for the long-term health of Holden manufacturing that we are able to stay lean and respond to the market."

Holden says workers not required on the days identified will be paid 60 per cent of their normal wage, which they can choose to top up through other entitlements, including long service leave.

So far this year demand for Holden cars is down 10 per cent in a total market that is running 9.4 per cent ahead compared to the same time in 2011.

Sales of the locally made Holden Commodore are down by almost 27 per cent while demand for the Cruze, also built at Elizabeth, is down by 7.7 per cent.

The West Australian

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