Federal Industry Minister Kim Carr says he supports a review calling for Australia to continue building larger cars.
The former Victorian premier Steve Bracks has released a report from a Government-commissioned review of the car industry in Australia.
It says Australian manufacturers would have difficultly competing with other countries to build smaller cars.
Senator Carr says the review is about ensuring the industry prospers, and that may include focusing on the large car market.
"The fact is that we do big cars very well, we are a country that has done this for some time, we don't have the option of making small cars because they're made elsewhere, where the investment has been placed by those companies," he said.
Senator Carr says the government will use the report to assess how the current system of subsidies should change.
"We have proposed the establishment of a green car innovation fund with precisely this in mind," he said.
"We need to reorganise and augment the existing arrangements, and we're looking to the review to provide us with advice based on widespread consultations."
Source: By Australian Broadcasting Corporation
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