About 30 South Australian Holden workers will lose their jobs as the company scales back production amid falling sales.
The car maker says it will reduce its daily output at its Elizabeth production line in Adelaide's northern suburbs from 310 to 290 vehicles from March 2.
It's believed about 30 contract workers will lose their jobs as a result of the change.
"This move will better align production with demand and support our plan of continuing to build world-class cars in Adelaide until the end of 2017," Holden said in a statement on Monday.
"There will be no reduction to full-time staff numbers but a small number of contract-labour workers will be impacted."
Australian Manufacturing Workers Union spokesman Scott Batchelor said more jobs could be lost at the plant later this year.
"I would expect there will be a major re-rate at some point in this year," he told ABC radio.
"There would have to be some redundancies at some point this year."
Holden said it was taking appropriate steps to support staff who would lose their jobs.
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