Prime Minister Tony Abbott says there's a good chance Toyota can be convinced to keep making cars in Australia - but it won't involve government handouts.
Toyota will be the last company manufacturing cars in Australia by 2017, when Holden closes up shop a year after Ford shuts down local manufacturing.
Mr Abbott says he has met with Toyota head Max Yasuda in recent days and believes the company is in a very different position to Ford and Holden since it focuses heavily on exports.
"That's why I think we've got good prospects of keeping it," he told reporters on Monday while announcing the start of planned roadworks along the Great Ocean Road.
He said it was "tragic" to see Holden leave, but noted that a package designed to improve the efficiency of the industry will be announced in the coming days.
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Mr Abbott said regions like Geelong, which has relied on manufacturing in the past, can shift the focus to other industries like tourism, higher education and biomedical research.
"I want to see people transition from old jobs into better jobs," he said.
But he's continuing to rule out any kind of direct assistance to the car industry.
"It will be the creativity, the dynamism and the commitment to running a successful business on their part, rather than taxpayer handouts, which will secure the future of all the businesses in this country," he said.
