Australia's automotive industry is not some problem child, outstaying its welcome and bleeding its parents dry, and co-investment between the government and the industry is certainly not a dirty word, despite what the neo-Liberals would have you think.

The automotive industry is a major employer and significant contributor to the national economy. But it is in crisis. Without an urgent commitment from the government, it could all be over by Christmas, and they know it. An industry that survived the global financial crisis could disappear because of the inaction by the Abbott government.

Cutting $500 million in government co-investment is not the answer. A Productivity Commission review as a political fix to postpone a decision until after next year's South Australian election will likely be nothing more than a post-mortem.

The Prime Minister said last week he wanted to create new jobs and protect existing jobs. But he will put the 46,000 Australians who are directly employed by the automotive industry out of work and threaten the livelihoods of another 200,000 who depend on it. He won't create jobs, he will destroy them. At a time when the mining boom is cooling off and the rate of economic growth is slowing, this is the last thing Australia's economy can afford.

The biggest problem for the automotive industry when it comes to the Abbott cabinet is their mindset. They oppose industry policy as a matter of principle and become downright apoplectic when it comes to the automotive industry.