Car maker Holden has told its workers they will be the first to know if the company plans to close its manufacturing operations in Australia.
The company has issued a bulletin to workers in Adelaide rejecting the latest media reports that it has already decided to pull out of Australia by 2016.
The company has described it as pure speculation and says it remains fully engaged in the process of negotiating with the federal government.
Managing director Mike Devereux spoke with workers in Adelaide on Thursday and is still due to front the Productivity Commission in Melbourne on Tuesday.
Australian Manufacturing Workers Union state secretary John Camillo says workers at the Elizabeth plant in Adelaide are distressed by the latest reports.
But he said Mr Devereux was upbeat in his comments.
"No speculation about closure, but he did indicate to the workers that these workers will be the first ones to be told if Holden are going to close," Mr Camillo told reporters outside the plant on Friday.
Mr Camillo has also criticised Prime Minister Tony Abbott over comments that while the government wanted the car industry to stay, there would be no extra funds provided.
Mr Camillo said if that was the case then history would show that Mr Abbott presided over the closure of the auto industry in Australia.
"He has to be very, very careful," he said.
Mr Camillo said Holden workers wanted to know their fate as soon as possible and a final decision by the company before Christmas would be best.
