Holden must make a significant financial contribution to retrain thousands of workers who will lose jobs when the company ceases Australian manufacturing, the Victorian premier says.
Denis Napthine says the closure of Holden's Victorian operations will provide a challenge to the state's economy, but he believes the car industry can survive.
Dr Napthine met workers at Holden's Fishermans Bend plant on Thursday morning and promised to stand with them and get the best deal for their future.
He has told Holden boss Mike Devereux that he expects the company to fully pay out workers.
"I also expect that General Motors will, of their own volition, introduce systems to assist workers in reskilling, retraining and assist them in seeking new job opportunities," Dr Napthine told reporters.
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"I have also told Mr Devereux this morning that the Ford Motor Company made a significant contribution to the package of assistance for the Ford workers and I would be looking for a similar and probably even a greater contribution from General Motors given the increased size of the impact on workers and the economy."
Engineers will be among those most affected by the Holden shutdown and their union says they warned the Victorian government four months ago of the likelihood of closure.
Chris Walton from Professional Engineers Australia said his organisation offered to advise the government and told them of the potential loss of 25,000 jobs, but they did not meet him.
He said the government finally said they would meet him on Thursday.
"Well, today the horse has already bolted," he said.
"It is absolutely appalling that the government is finally paying attention to this too late."
Asked if Victoria would fall into recession as a result of the closure, Opposition Leader Daniel Andrews said it would be a tough Christmas for many families.
"I do fear for the prospects of our unemployment rate, which is up ... I do fear for jobs and for growth and for families," he said.
Dr Napthine said the best thing federal Labor could do to help the car industry is vote to repeal the carbon tax.
The premier will hold a roundtable on Wednesday with key automotive industry players, and remains hopeful that Toyota can survive.
"We believe Toyota do have a viable business model, and we will be working with Toyota to secure their future in Victoria, secure their supply chain and give them every chance to continue to grow and develop here in this great state of Victoria," he said.
