THE new generation Holden Commodore began to take shape in Melbourne this week - proving the iconic car has a home-grown future until at least 2018.

The first prototypes of the VF Commodore will soon be entering major test programs at Holden's Lang Lang centre and are expected to have a four-year life expectancy when they replace today's VE in showrooms from mid-2013.

The prototype build program was confirmed yesterday by Holden chairman and managing director Mike Devereux, countering claims that the locally made Commodore had no future beyond 2014.

"The 2014 Commodore is designed and engineered here. It is being engineered right now. We started building prototype vehicles in Port Melbourne two days ago," he said.

Mr Devereux was reacting to claims by the Association of Professional Engineers, Scientists and Managers Australia that its members faced major job losses without a continuing development program for the Commodore.

Holden employs about 1000 engineers and designers at its headquarters in Fishermans Bend, Victoria, at the proving ground and its manufacturing base in Adelaide.

However, Mr Devereux and senior Holden executives dodged questions about a Commodore to follow the VF.

It's thought both Holden and Ford will eventually have to switch their local heroes - Commodore and Falcon - to a localised version of a strong selling global model. Ford is expected to eventually confirm an engineering tie-up with the Taurus model sold in the US.

"We haven't made a decision on what we will build in Adelaide post our current range and post model-year 2014," Mr Devereux said.

"What we are going to make hasn't been decided yet. It's still too early."

Work on the VF Commodore is concentrated on weight cuts and efficiency gains, thanks in part to a $30 million grant from the now defunct Green Car Innovation Fund.

The car will be built in Adelaide alongside the compact Holden Cruze, which is already shaping as a major winner for the red lion brand.

The Cruze has been selling strongly since it switched from Korean to Australian sourcing and is forecast to eventually overtake the Commodore as Holden's top selling model.

Gallery: Holdens down the years

Originally published as Australian icon geared for change