Slow sales and pressure from General Motors has forced Holden to reduce its South Australian production line
The production of its Commodore car will be cut down to one shift from 4 May, but the company says no staff will be lost.
Production will be reduced from 620 cars a day to 310.
“This is the best way to protect jobs in the current environment and keep Holden in the best possible shape leading into the opening of our second car line and an improvement in global market conditions," said Holden chairman and managing director Mark Reuss.
He said the move was about cementing a viable strategy as part of GM's broader restructure.
Sales of the Commodore have almost halved in the last 10 years - having been outsold in individual months by the Toyota Corolla and Mazda3.
Holden's parent company GM faces multi-billion dollar losses in the US.
However, Mr Reuss said that didn't automatically determine Holden's fate.
"Bankruptcy of GM doesn't mean automatic bankruptcy for subisdsiary," he said. "We've managed our cast very well here. We hope to do things out of court and without bankruptcy."