Prime Minister Tony Abbott says the government will work with Toyota to ensure the automotive sector remains viable in Australia.
(Transcript from World News Australia Radio)
It comes after Holden announced it will wind down decades of production in Australia over the next four years.
As Hannah Sinclair reports, there are concerns as to whether the almost 3,000 affected workers will be able to use their skills elsewhere.
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Holden's announcement that it will stop making cars in Australia by 2017 has prompted angry responses from workers, union groups and politicians.
The Opposition believes 3,000 Holden workers will be directly affected by Holden's withdrawal, with 250,000 more jobs in the wider automotive sector also under threat.
Opposition leader Bill Shorten says the Coalition is largely to blame for Holden's decision.
"When Labor was in government, Holden didn't leave the country. The other mob have been in power for three months and they've managed to create a set of circumstances that now all of a sudden we're looking at the demise of the car industry in Australia. This is an economic disaster and the government does have a role to play."
Prime Minister Tony Abbott says he wants to see other companies, like Toyota, continue to manufacture locally.
But Mr Abbott says for Toyota to survive in Australia the economy needs to be stronger.
"The important thing though is not to recriminate, play the blame game or peddle false hope. The important thing now is to build the kind of economy that will create the jobs of the future in successful, competitive world-leading businesses. And that's why the government is so determined to get taxes down and regulation down."
Victorian Premier Denis Napthine says the workers losing their jobs will need to be compensated by the federal government.
The Premier says he doesn't know exactly how much is needed, but it would be much more than the $50-milllion that Ford workers received.
Ahead of a meeting with the Prime Minister in Canberra, Mr Napthine also said Toyota's future could be secured.
"I want to work with Toyota because I believe their business model is different. It is export-oriented as well as local market-oriented. And I believe there are opportunities to work with Toyota in a constructive way. I want to do that and I believe we can persuade the federal government to do that."
But the Australian Council of Trade Unions says if Toyota is to survive, more investment is needed in the automotive sector.
Council Secretary Dave Oliver says the federal government should make sure the car-maker has access to global supply chains.
"Look the concern will be about whether or not Toyota can still maintain operation with a diminished supply chain. And that's something that we should all be working towards achieving to at least ensure that we've got one manufacturer left. But there still can be a future for the auto industry in this country, particularly in the components sector, if we're able to get access to part of the global supply chain."
The Geelong Ethnic Communities Council, known as Diversitat, supports community groups with training and employment services.
Diversitat says a high number of people working in the auto manufacturing industry are from migrant or non-English speaking backgrounds, which is a concern.
Diversitat CEO Michael Martinez says when large industries close down production, there is an ongoing struggle to obtain meaningful work.
"A lot of them struggle. They can get re-employed in some instances. But other times, unfortunately, people are reduced to working in very low-paid work in the agricultural sector or sometimes unemployed for the rest of their lives, almost."
Mr Martinez worked with Diversitat during the mid-1990s when textile and clothing industries ceased production in Geelong.
But unlike textile workers, who were able to relocate to community sectors, Mr Martinez says he doubts whether car manufacturing skills are transferable.
"You hear the talk that they are transferable, but in what sense? I mean the growth they're talking about is in things like the building industry. Well I don't think the skills are transferable there, you have to have had experience in the building industry. They're certainly not transferable to things like the community sector or aged care, or children's services. Or I can't see some of these factory workers becoming baristas."
