Talks begin on Holden workers package

Industry Minister Ian Macfarlane says the manufacturing industry urgently needs to change to survive.

National talks began in Melbourne on Wednesday between Mr Macfarlane and industry groups about how the $100 million package for Holden workers will be spent.

He said manufacturing needed to transition out of the auto industry into other sectors to remain viable.

Geelong would form the focus of the Victorian review.

"We need to transition these companies to a new market space," Mr MacFarlane said.

"We are working closely with manufacturers to investigate new opportunities to move from traditional heavy-industrial manufacturing towards higher-value-add production."

A second forum will be held in Adelaide on February 5.