SA urges continued auto assistance

The South Australian government has called for continued commonwealth assistance to the car manufacturing sector for at least the next five years to help cover the loss of Holden in 2017.

In a submission to the Senate inquiry into the car industry, the state government says the $900 million Automotive Transformation Scheme should be continued until at least 2020 to allow car supply chain companies to diversify.

It has also urged the federal government to provide more funds to help displaced workers and communities in Adelaide's north.

"We want to work collaboratively with the commonwealth, local councils, industries and communities to give the supply chain companies the best possible chance to diversify and remain sustainable, once the last car rolls off the Holden production line," SA Automotive Transformation Minister Kyam Maher said on Friday.

"Reducing support through the Automotive Transformation Scheme would be counterproductive and would harm the South Australian economy."

The SA government believes Adelaide's northern suburbs, where the Holden plant and many car component producers are located, will be particularly hard hit by Holden's closure.

"Northern Adelaide will need significant help to address the economic and social challenges," Mr Maher said.

The state government is developing an economic plan for northern Adelaide which will guide job creation and training for workers in growing industries such as food manufacturing and defence.

"But experience interstate and overseas shows all levels of government must be involved to ensure automotive-intensive regions and communities can survive and thrive," the minister said.