Holden chops jobs

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From News:

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.

One wonders if there isn’t a little of the doom loop here as well. I’d be surprised if the decision to pull out of manufacturing didn’t do material harm to the brand and sales among the petrol heads that used to support the Commodore in the guts.

About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.