Holden’s Elizabeth plant in South Australia will cease production in the days running up to Christmas, with slow sales blamed.
“Market response days” will see employees stay at home on 60 per cent of their regular wages, with the option of using long service or holiday leave to top up their pay.
“We do understand that these kind of decisions, we don't take them lightly and we do understand that there is an effect on our employees, so we worked really closely with the unions to identify the best days and everyone's been informed,” Holden corporate affairs manager Sean Poppitt told the ABC.
The strongly competitive Australian car market and the need for flexibility to match slower demand were cited by Holden.
“It's no secret that it's been tough,” Poppitt said to Adelaide Now.
“All you need to do is look at the sales figures. It's incredibly competitive out there."
Sales of the Holden Commodore are at an all-time low.
The subject of support for auto manufacturers has been prominent this week, with the federal government taking the Australian Financial Review to the NSW Supreme Court to keep details of industry lobbying a secret.