PM hoses down Holden takeover proposal

Prime Minister Malcolm Turnbull has played down a Belgian tycoon's plan to take over Holden's car making plant in Adelaide.

Mr Turnbull, who met with Punch Corporation chief executive Guido Dumarey this week, has urged South Australians to be realistic about the likelihood of the takeover going ahead.

"It's very encouraging but I don't think we want to get ahead of ourselves. They've obviously got to have talks with General Motors. There's lot of work that would need to be done," he told 5AA radio on Friday.

Mr Dumarey's proposal has strong support from federal Industry Minister Christopher Pyne and the SA Liberals.