Holden will shed hundreds of jobs from its Elizabeth plant in a further blow for the struggling Australian car manufacturer.

Managing director Mike Devereux has told reporters that Holden will shift from making 400 cars per day to 335.

Up to 400 jobs will go from Elizabeth plus another 100 from Victoria in what the company is calling a restructure.

More than 2000 workers are employed at Holden's Elizabeth plant. They were told of the job cuts at 1.30pm.

He attributed the job losses to the 'unprecedented' high Australian dollar and highly competitive automotive industry.

"Today's announcement is an entirely difficult one for everyone in the entire Holden family," he said.

"Since we launched the Cruze in 2006, just four short years ago, our pricing has had to reduce by $2500 on exactly the same vehicle, to compete with imported vehicles."

Mr Devereux refused to answer direct questioning about whether the Holden Elizabeth plant will close.

"There are no guarantees in life or in the automotive business ... I cannot predict the future," he said.

"What we need to do is make great cars that Australians want to buy."

The announcement comes less than six months following a $275 million taxpayer-funded bail out.

Press play below for updates and photos from Elizabeth earlier.