Pete Wargent blogspot

CEO AllenWargent Property Buyers, & WargentAdvisory (institutional). 6 x finance author.

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Tuesday, 21 April 2015

More jobs to go in Elizabeth

Manufacturing jobs cuts

Elizabeth in Adelaide already has by a huge margin the highest capital city unemployment rate in Australia, and as considered here previously, there may be worse to come.

Reported News:

“Holden will make 270 more workers redundant at its car assembly line in Elizabeth, South Australia, next month as demand for locally-made vehicles hits new lows.

So far this year sales of the Holden Commodore are down by 17 per cent and deliveries of the Cruze small car are down by 5 per cent in a market that has just posted the strongest first three months on record.

Staff numbers will fall from 1530 production line workers to 1260 as a result of the cutbacks, and vehicle production will drop from 290 cars per day to 240 cars per day from May 25, when the redundancies are due to take place.”

According to the report, there could be further job cuts to come later in 2015:

“Holden has not ruled out further redundancies later this year: “As difficult as this process is, the contraction of the manufacturing will happen on a sliding scale. One of our priorities is to not release everyone onto the job market at the same time.”

“Despite the new round of job cuts, and persistent rumours of early shutdowns, each of Australia’s three remaining car manufacturers insists production will continue all the way to their respective closure dates.

Ford is due to close its Broadmeadows and Geelong facilities in October next year, with Holden and Toyota are due to shut their factories in late 2017.