Business News
Australia's GM Holden cuts car production
Mar 5, 2007, 5:35 GMT
Sydney - Carmaker GM Holden is to axe jobs at its plant in Adelaide in response to Australians spurning the petrol-hungry six-cylinder vehicles that are its speciality.
As many as 600 jobs could go following a slide in sales of the once-market-leading Commodore range. Holden cut 1,400 jobs in August 2005 as Australians shifted their interest to more economical four-cylinder cars.
Toyota's Corolla has overtaken the Commodore as the best-selling car.
Last year GM Holden was ridiculed when its latest Commodore was not only bigger and faster than its predecessor but heavier and less economical as well. 'A car is a massive emotional statement,' Holden sales boss Alan Batey said in its defence, noting that the extra petrol money would be the equivalent of just 'two beers a week.'
Australia has four carmakers - Holden, Ford, Toyota and Mitsubishi - and they all roll out 4-litre vehicles. They find most of their buyers in the Middle East where greenies are few and petrol is even cheaper than in Australia.
Big car sales were down by a quarter last year and sales of small cars up by a quarter. Sales of the locally built big sixes, which topped 200,000 in 1998, are now 150,000 a year and falling fast.
© 2007 dpa - Deutsche Presse-AgenturCOMMENT
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