Australian Minister for Industry Ian Macfarlane visited manufacturing facilities of local automobile maker General Motors Holden in Adelaide on Wednesday as the first step to save the embattling plant.

Accompanied by South Australian Premier Jay Weatherill and Independent Senator Nick Xenophon, the minister began negotiations with Holden boss Mike Devereux to thrash out a deal on support for the company to ensure it continues to build vehicles in Adelaide.

Macfarlane said his visit to Holden's manufacturing plant in Adelaide has been a first step toward helping secure a future for local car production.

Holden was promised A$275 million($257 million) last year but is now thought to need more - possibly close to 500 million ($467 million) - before committing to develop and build two next generation cars from 2016.

Before the federal election in September, the Liberal-National Coalition stood firm on a plan to cut 500 million ($467 million) from total auto industry assistance. Since the poll on Sept. 7, Macfarlane has been more supportive of Holden, suggesting he was willing to see what the new government could do.

However, the minister said on Wednesday that he doesn't know at this stage where the money to assist the company will come from and has warned parent company General Motors that it could take some time to find a solution.

"This is one hell of a challenge. One hell of a solution is required," Macfarlane told reporters, "There will be one shot at this."

According to the Australian Broadcast Company, Premier Weatherill had a meeting with Macfarlane in Adelaide on Tuesday night about Holden's future.

"I've been pleased to see the remarks of Mr Macfarlane which indicate that there does seem to be some flexibility in his position," Weatherill said.

Independent Senator Xenophon also thinks Macfarlane is keen to secure backing for Holden.

"From the language that I've gathered from Ian Macfarlane he wants to get a practical solution here to secure the jobs not just of the 16,000 South Australians that rely on Holden surviving in South Australia, but the tens of thousands more jobs that would inevitably go if Holden leaves," he said.