Holden cuts back out­put

NT News - Motoring - - CARS GUIDE - By STU­ART MARTIN

SHRINK­ING de­mand for large cars has again prompted Holden to re­duce pro­duc­tion.

Holden’s South Aus­tralian spokesman Sean Pop­pitt said the com­pany was im­ple­ment­ing a num­ber of what the work­place agree­ment with staff calls ‘‘mar­ket re­sponse days’’ be­tween now and the end of the year in re­sponse to re­duced de­mand, but de­clined to put a num­ber on it.

‘‘It’s less than 4 per cent of our to­tal pro­duc­tion vol­ume for the year,’’ he said.

The Ade­laide plant, which em­ploys 2400 peo­ple, is pro­duc­ing 400 Caprice, Cruze and Com­modore ve­hi­cles — 45 dif­fer­ent mod­els in to­tal — per day.

The plant was sched­uled to run up to around 240 pro­duc­tion days this year, with a tar­get of 90,000 ve­hi­cles for 2012. A 4 per cent re­duc­tion would re­duce the ve­hi­cle pro­duc­tion by 3600 units, or as many as nine pro­duc­tion days.

‘‘Would we pre­fer not to be do­ing it, ab­so­lutely, but it’s not an enor­mous num­ber and its cru­cial to us, be­ing a small-vol­ume man­u­fac­turer, that we are able to re­spond to the mar­ket and stay lean, be­cause hav­ing ex­cess in­ven­tory for us is the worst po­si­tion we could be in at this point,’’ Mr Pop­pitt said.

The large car seg­ment con­tin­ues to re­duce in size — so far this year it is down more than 20 per cent on last year’s lack­lus­tre fig­ures (al­though Com­modore con­tin­ues to out­sell the Fal­con by 2:1).

The 2011 tally for large car sales had shown a 20 per cent fall on the pre­vi­ous year.

The small car seg­ment has grown by more than 2 per cent, al­though the Cruze sales are down by 7.7 per cent this year.

Newspapers in English

Newspapers from Australia

© PressReader. All rights reserved.