Temporary and casual workers at Holden's Elizabeth Plant in Adelaide appear set to lose their jobs.
South Australian Premier Jay Weatherill says the job cuts would be a result of the high Australian dollar hitting export growth.
Mr Weatherill has reassured the plant's permanent workforce they will not be affected by the job cuts.
Employees are expected to be told this week about what to expect.
The Premier made his comments on Wednesday after news of the decision became public.
Holden managing director Mike Devereux is in Adelaide to inform employees about operations and is expected to release details on Thursday.
