Mitsubishi hopes to cut another 100 jobs from its Adelaide, South Australia plants, according to a company spokesman.
The company has offered an enhanced redundancy package to its workers, hoping for volunteers to take the offer.
A Mitsubishi spokesman said the move was part of a plan announced earlier this year to cut approximately 250 assembly line jobs, following a reduction in demand for large cars in the local market.
The enhanced redundancy offer will provide four and a half weeks pay for every year of service, up from three weeks pay in the previous package. Australian Manufacturing Workers Union spokesman John Camillo said he did not think many workers would take the offer however.
Demand for models produced at the two plants is down 22 percent in 2006. The company has already reduced its workforce by 250 to 1,800, but wants to eliminate an additional 100 assembly line jobs.