General Motors will be axing 500 jobs in Australia due to a weaker demand and a high Australian dollar.

General Motors will be axing 500 jobs in Australia due to a weaker demand and a high Australian dollar.

By August 1st, GM will be reducing production rate at its factory in South Australia from the current 400 units per day to 335 cars. As a consequence of this decision, 400 jobs will disappear from the Elizabeth assembly plant, with another 100 hourly product development jobs in Victoria to be eliminated as well.

General Motors mentioned in an official press release all those affected by layoffs will receive severance packages. GM said this was necessary in order to "better align Holden with projected future volume." The American automotive giant declared that because of AUD's appreciation, at the moment it's 60 percent more expensive to build a car in Australia compared to ten years ago.

Note: 2014 Holden Cruze pictured

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