FEDERAL Industry Minister Ian Macfarlane says it will be "one hell of a challenge" to save car maker Holden but he wants the company building vehicles in Australia for the next 100 years.
The minister toured Holden's Elizabeth plant in Adelaide on Wednesday and urged all those involved not to play politics with the issue.
He says he doesn't know at this stage where the money to assist the company will come from and has warned parent company General Motors that it could take some time to find a solution.
"This is one hell of a challenge. One hell of a solution is required," Mr Macfarlane told reporters.
"There will be one shot at this."
Immediately after Wednesday's plant tour Mr Macfarlane entered discussions with Holden boss Mike Devereux and South Australian Premier Jay Weatherill.
Mr Devereux declined to reveal how much extra assistance the company now required after initially securing an agreement last year for $275 million to be provided.
Holden is now thought to need close to $500 million before committing to develop and build two new car models from 2016.
"The discussions that we're going to have begin today and those discussions are likely to be ongoing," Mr Devereux said.
Mr Macfarlane said the federal government intended to press on with a review of car industry assistance by the Productivity Commission and urged Holden's parent company General Motors to be patient.
He said the government also intended to stand by its election policy to cut $500 million from total auto industry assistance.
"It won't break the car industry. I'm confident I can get around that," he said.
"I'm not concerned about the next six months, I'm not concerned about the next three years.
"My goal is to see Australian cars built here for 100 years."
But the minister said the industry had to become internationally competitive and survive without ongoing government assistance.
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