By William Maley
Staff Writer - CheersandGears.com
April 9, 2013
Holden is cutting 500 jobs due to the strengthening Australian dollar, which has caused country's labor rates to be one of the highest in the world.
“I can’t control what central banks do. The value of the Australian dollar, and importantly the currency plays being made by other countries, mean that we are not competing on a level playing field,” said Holden managing director, Mike Devereux yesterday.
The Australian dollar has surged 83% when compared to the Japenese Yen since 2008. This has prompted an increase in Japenese imports into Australia. This is further compounded by the rise in costs of plants in Australia. Devereux said this makes the operation “one of the most expensive, if not the most expensive” in GM.
The job cuts will take place in two facilities: Holden's Elizabeth plant, where the Commodore and Cruze are built, and Holden's Victorian product development facility.
These new cuts come five months after Holden announced 170 jobs would be cut for similar reasons.
Source: Bloomberg, Drive.com.au
William Maley is a staff writer for Cheers & Gears. He can be reached at [email protected] or you can follow him on twitter at @realmudmonster.
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