The Federal Opposition Leader has defended the car makers abandoning Australia against a Government accusation that they are "parasitic".

LNP MP George Christensen has lashed out at the car makers abandoning the country, accusing them of not giving a stuff about their workers or the country, and "mooching off" taxpayers for years only to "cut and run when the going got tough".

He says the companies should repay whatever taxpayer subsidies they have received in the past few years, now they are departing.

Opposition Leader Bill Shorten says it is another example of the Abbott Government looking for someone to blame for job losses.

"The Abbott Government MPs have been attacking the car workers, they're attacking the car companies," he said.

"There was one Liberal MP who called the car industry 'parasitic'.

"Tony Abbott, if you're looking for someone to blame about the death of the car industry, buy a mirror," Mr Shorten said.

But Cabinet Minister Christopher Pyne said Mr Christensen's views did not reflect the Prime Minister's.

"George is entitled to his opinions but that's not the Government's policy," Mr Pyne told reporters.

Toyota's announcement this week that it would be closing down its Australian operations in 2017 marked the death of the local car industry.

It followed last year's announcements by Holden and Ford that they are pulling out of Australia.

Hockey considers relaxation of taxes on foreign cars

Industry bodies have subsequently called for the remaining tariffs and luxury vehicle taxes imposed on imported cars to be relaxed now there will be no local industry to protect.

Mr Christensen agrees those tariffs should be removed but not until the last Australian made car had rolled off the production line.

Treasurer Joe Hockey said he was sympathetic to the argument but gave no firm timeframe for when the imposts might be taken away.

"Obviously if there's no domestic car manufacturing industry then it does change the parameters of the regulation of the car industry and the taxation of the car industry.

"We'll consider that in due course," the Treasurer said.

Car makers should pay back subsidies: Christensen

Mr Christensen says his own Government has been treating the heavily subsidised industry with "kids gloves" for too long and needs to toughen up, and demand compensation from the car makers.

"There's been some kid gloves put on the car industry but I've got to say, I'm not a fan of what they've done," Mr Christensen told the ABC.

"They have been almost a parasitic industry on the taxpayer and when the going has got tough they've cut and run.

Sorry, this video has expired George Christensen speaks with Latika Bourke

"The Labor Party is blaming the Government but who's pointed the finger at the car industry and said, 'you guys have mooched off the taxpayer with corporate welfare for so long but when the going got tough, you've cut and run and you've left so many workers in the lurch'."

Mr Christensen says the car makers should consider giving back the unspent subsidies they have received.

"General Motors, Ford, Toyota have all got a lot to answer for," he said.

"Anything that's been handed to them over the last three to five years probably should come back to the taxpayers."

But he conceded it would be unlikely the car makers would return any funds to taxpayers because they "don't give a stuff" about Australia.

"That's why they're leaving, that's why they're heading to overseas markets where the labour rates are substantially lower," he said.

"They've done this country no favours, all they've done is take our money. Pay it back.

"They knew that sooner or later they were going to be leaving and they still had their hand out for taxpayer dollars, that's not right."