Labor has questioned how the federal government can justify supporting the shipbuilding yard in South Australia but let the motor vehicle industry die.
The imminent closure of the Holden plant in Adelaide's north was a deliberate political decision by the coalition government, Labor senator Kim Carr says.
"The destruction of the manufacturing plants in this country need not have happened," the former industry minister said.
"This was a political decision, a deliberate political decision and a combination of a campaign by a particular ideology over many, many years."
Mr Carr's comments came at a public discussion on Wednesday into the looming closure of the car maker and its likely impact on the state economy.
The key speakers at the event consisted of three state and federal Labor politicians and a union leader.
Flinders University's Australian Industrial Transformation Institute hosted the public discussion.
Institute director John Spoehr says Holden's closure is expected to result in the direct loss of 3000 jobs, mainly in Adelaide's northern suburbs, with flow-on effects for 500 or so suppliers which employ up to 12,000 other workers.
Professor Spoehr says economic conditions have improved since Holden revealed its plan to end Australian production three years ago.
"However the state is still heading for the largest economic shock we have experienced in the past 20 years," he said.
"While efforts to try and reduce the impact of the closure on auto workers are making a difference, the fact remains that thousands of well-paid jobs are being lost, intensifying competition for job vacancies.
"Investments in accelerating industry diversification remain critical along with generating short-term job opportunities through high levels of public investment in social and physical infrastructure projects".
Others taking part in Wednesday's forum included Australian Manufacturing Workers Union state secretary John Camillo, South Australian Employment Minister Kyam Maher and local federal MP Nick Champion.
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