A summit on the future of the car industry will be convened following Ford's decision to pull out of car making in Australia in 2016.
About 1200 employees will lose their jobs when Ford closes its two plants in Victoria by October 2016.
Prime Minister Julia Gillard and Treasurer Wayne Swan on Friday held talks with union and industry leaders in Sydney at which Ford's decision was discussed.
AAP reports the prime minister told the meeting she had agreed to a request by the ACTU for a "strategic discussion on the future of Australia's automotive industry".
The summit is expected to involve members of the prime minister's task force on manufacturing.
The panel meeting also heard calls for better policies to encourage Australian businesses to be more internationally competitive.
Australia imposes a tariff of 5% on imported cars, but a number of Labor backbenchers and unions say it should be at least 10% while the dollar remains high.
Ms Gillard ruled out such a move on Friday, saying it would not assist manufacturers in the long term.
AAP reports the federal government plans to spend $A1.5 billion on car industry assistance from 2016 to 2020.
