Holden says it needs in the order of $300 million in taxpayer funds to save jobs and keep its two-model production plant in Adelaide running.
The car maker's chief executive, Mike Devereaux, said yesterday the federal government would need to up its co-investment on the Cruze model to ensure General Motors does not send production offshore, The Australian reports.
Holden has already received investment of $150 million from the government but Mr Devereaux told ABC's Inside Business it would need a multiple of this figure if it was to remain in Australia.
Mr Devereaux indicated that Detroit-based GM was prepared to enter similar arrangements with other countries that were prepared to make attractive offers.
"A lot of people wish that the world was flat and that everybody played by the same rules but countries aggressively compete for what Australia has," he said.
The high Australian dollar has hurt Holden's export market and has forced the company to focus on the domestic market alone.
Mr Devereaux said Britain had just doubled its co-investment fund for general industry to $2.4 billion, attracting 170 applications from companies including BMW and Nissan.
"So very smart policies in the UK; we think that not just auto but broad-based manufacturing should have similar policies in this country," he said.