The car industry slump is set to cost hundreds more jobs in Melbourne, with parts maker Robert Bosch slashing 12 per cent of its workforce and other firms under stress as the big vehicle makers cut production.

In the latest sign of bleak times, Bosch will axe 170 jobs at its Clayton plant after an "unprecedented" 40 to 50 per cent drop in overseas demand for its parts, as well as a significant slowdown in Australia.

Holden, meanwhile, said yesterday it would cut production by 10 days in April at its Adelaide assembly plant, a move that will place further pressure on local parts makers.

Holden's move came amid fresh speculation that it would rush the closure of its four-cylinder engine plant at Fishermans Bend in Melbourne. The plant, once hailed as an export success story, is due to close in October, but may now be shut by June, bringing forward the loss of about 500 jobs.

Source: theage