Australian Prime Minister Kevin Rudd has announced a $A6.2 billion assistance package for the Australian car industry over the next 13 years.
The plan includes investment of $A1.3 billion in green initiatives for the industry.
The ABC reports the federal government will also go ahead with plans to reduce automotive tariffs to 5% from 2010.
A report by former Victorian Premier Steve Bracks earlier recommended significant reforms to the car industry.