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Holden closure decided by December: Carr

Mr Carr said General Motors would be spooked by the Coalition's pledge to cut $500 million from industry funding.

The decision to close Holden’s manufacturing operations could happen as early as December, the Shadow Industry Minister Kim Carr has warned.

But Federal Industry Minister Ian Macfarlane denies this is the case: "Holden haven’t come to me and said ‘if you don’t give us an answer by Christmas we’re going’," Mr Macfarlane told News Corp Australia from Tokyo where he visited Toyota executives. "(But) they’d prefer a decision sooner rather than later."

Mr Carr said Holden’s manufacturing future was being discussed by the General Motors board in Detroit on a monthly basis.

"The board of General Motors … met about three weeks ago, Australia was front and centre, and every month the board is considering its position," said Mr Carr.

"It may well be as soon as a December meeting a decision is taken to wind down (Holden’s) manufacturing facilities in this country."

Holden has declined to comment on the political wrangling.

But News Corp Australia understands Holden's plans to build two new models in Australia from 2016 to 2022 have been put on hold pending the Government's decision on further funding, due in April or May next year after a Productivity Commission Review.

Mr Carr said the Federal Coalition has known since last December that Holden’s deadline of December 2013 was critical.

"The timetable was very clear to me as a Minister, as it was to the Opposition," said Mr Carr.

"General Motors Australia advised the Government at Christmas time last year of the timetable. They advised the Opposition of that timetable. They’ve subsequently advised the new Government of that timetable.

"All of the circumstances point to this simple fact. The government knows the timetable, what they are seeking to do is to sit on their hands, to insult the international executives of General Motors and … suggest this is a company which the Government doesn’t support.

"The new Government has basically said (to General Motors) ‘you can stick it up your jumper’, we’ll have an enquiry, you can wait until we get past the South Australian election,’ and of course by that time what we’ll be talking about is the death of the automotive industry."

Mr Carr said General Motors would be spooked by the Coalition's pledge to cut $500 million from industry funding.

He said General Motors "made investments on the basis of legislated (taxpayer) returns".

"The government is taking away commitments that were made and put in legislation upon which the business case was built for the production of those (future) vehicles," said Mr Carr.

This reporter is on Twitter: @JoshuaDowling