Holden has presented an unprecedented demand for its workers at its manufacturing facilities in Australia to accept a pay cut or else the company would be forced to abandon the country like its US-Based rival, ford.

The company has asked the federal government to provide funding for the car industry in the country and indicated that it would try to cut wages at its manufacturing facilities in the country. Company's managing director Mike Devereux indicated that the company might have to leave the country if the government does not offer long term funding for the industry.

Coalition industry spokeswoman Sophie Mirabella said that if the Tony Abbott wins the federal election, the new government would ensure the survival of the car industry. The Gillard government's assistance scheme includes a $1.5 billion will be paid out between 2011 and 2015, and a further $1 billion over the following five years.

The Coalition government has said that it would reduce the initial payment to $1 billion but will keep the remaining payment unchanged. This has caused concerns in the industry that is facing a difficult business environment in the country. Ms Mirabella criticised the government for not being able to protect the car industry in the country.