SOUTH Australia's peak business group has backed further government funding for Holden as state parliament passed a motion calling for prompt action by the federal government.
Business SA says whether or not Holden has a longer term future as a local producer, if the company leaves in 2016 it would be disastrous for the auto industry, its supply chain and for other industries.
"An early withdrawal of Holden from South Australia would still leave a substantial price to pay in terms of industry assistance, unemployment and retraining," chief executive Nigel Mcbride said on Thursday.
"The best option for the medium term is sensible co-investment while South Australia is able to grow in confidence and build thriving industries in other areas."
Premier Jay Weatherill said Holden's future was the most important economic issue facing SA with up to 13,000 jobs at risk in SA including those among component suppliers.
"It is clear that the future of the car industry must be resolved without further delay," Mr Weatherill said.
"Every day the federal government refuses to make a decision on co-investment with the automotive sector increases the risk Holden will leave."
Opposition Leader Steven Marshall said the premier lacked credibility on the issue after declaring the company had been saved last year by a $275 million state and federal funding package.
However Mr Marshall said the opposition also wanted a quick response from the commonwealth.
"We want a decision on Holden, just like the Labor Party wants a decision on Holden, just like the people of South Australia want a decision on Holden," he said.
"It's no secret we're encouraging (Prime Minister) Tony Abbott and his team to work as quickly as possible to come up with a solution.
After agreeing to last year's package, Holden is now thought to need as much as $500 million to commit to a plan to build two new car models in Adelaide from 2016.
The company recently held talks with federal Industry Minister Ian Macfarlane but the government is insistent it will wait for a productivity commission report into the auto sector before making a decision.
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