A year after Holden announced it was hitting the road, the economy and workers are still paying the price, Labor says.
But Employment Minister Eric Abetz insists the industry could not have survived even with government assistance.
Twelve months ago on Thursday, GM Holden announced the company would stop making vehicles by the end of 2017, ending 65 years of building cars in Australia.
The company, which blamed the high dollar and strong global competition, is shedding 2900 workers from its plants in Victoria and South Australia over four years.
The anniversary comes as unemployment hit a 12-year high of 6.3 per cent.
Opposition Leader Bill Shorten said Treasurer Joe Hockey had goaded Holden into leaving Australia as the government scaled back industry assistance.
"Australia has paid the price ever since," Mr Shorten said.
"Thousands of jobs will be lost because of Tony Abbott and Joe Hockey's disgraceful treatment of the manufacturing industry."
Mr Shorten said the government was making the situation worse by creating uncertainty over other manufacturing sectors, such as solar, by seeking to scale back the renewable energy target.
Senator Abetz said the writing had been on the wall for the car sector.
"The simple fact is the automotive sector, despite the amount of money that was provided, regrettably could not survive in Australia," the minister told reporters in Adelaide.
He said Mitsubishi and Ford had made their departure announcements under Labor's watch.
"The flow-on effect has now been, regrettably, to Holden and Toyota."
In February, Toyota announced that it, too, would cease local manufacturing in 2017, shedding 3900 jobs.
Senator Abetz said the government was doing all it could to ensure the smooth adjustment of the economy.
Australian Manufacturing Workers Union national vehicle secretary Dave Smith said workers would fight to retain what industry assistance was still available to the downstream auto supply chain.
A year-long Senate inquiry was set up on November 24 to come up with a blueprint for the future of the automotive industry.
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