The Belgian businessman who has put forward a plan to save Holden's Elizabeth factory in Adelaide's north has met with Prime Minister Malcolm Turnbull, but Australians have been warned "not to get ahead of ourselves".

Key points: The Prime Minister says businessman Guido Dumarey's proposal was "encouraging"

The Prime Minister says businessman Guido Dumarey's proposal was "encouraging" Mr Dumarey has put forward a proposal to takeover Holden's Elizabeth plant

Mr Dumarey has put forward a proposal to takeover Holden's Elizabeth plant He has met with state and federal ministers

Mr Turnbull told 5AA he was cautiously optimistic about the proposal put forward by entrepreneur Guido Dumarey.

"There have been a number of cases where new automotive manufacturers have taken over old plants," Mr Turnbull said.

"I did meet briefly Mr Durmarey, he came and met with some of my team.

"It was good to see him, it's even encouraging but I don't think we want to get ahead of ourselves."

Mr Turnbull echoed sentiments expressed by South Australia Premier Jay Weatherill who said Mr Dumarey still had "big hurdles" to jump.

Mr Weatherill and Innovation Minister Kyam Maher met with Mr Dumarey in Adelaide on Thursday morning.

"They have to have talks with GM (General Motors)," Mr Turnbull said.

"A lot of work would need to be done.

"As far as the Government's role, there is, as you know, in place an Automotive Transformation Scheme which can provide support to help transform car makers into modern or more modern exported oriented industries — that legislation remains in place.

"This is promising, it's potentially very exciting but it's very early days."

Mr Turnbull said the Automotive Transformation Scheme would aid in some of the expense of renovating the Elizabeth site.

"There is a lot of expense associated with site remediation," Mr Turnbull said.

"It's early days but it's encouraging. I would just encourage him and I would encourage everyone to provide as much assistance as they can but we shouldn't get too far ahead of ourselves."

About 1,600 workers are slated to lose their jobs at Elizabeth when Holden shuts down production next year.

The 56-year-old businessman is head of the Dumarey family, which owns Punch Group, a collection of businesses and investments in Europe.

The company said its most important activity is the former GM-owned transmission plant in Strasbourg, France, which it took over in 2013.