Senator Carr, speaking at yesterday’s launch of two more fuel-efficient engines that will power the Commodore family sedan from next month, said federal government aid was designed to help car makers with small changes to fuel economy rather than redesigning whole cars.

He said engines such as the 3.0-litre V6 that will soon power part of the Commodore family car range, and a turbocharged 2.0-litre four-cylinder engine that will power the Ford Falcon family sedan, were a start for a local car-making industry that could not yet afford to build a completely new, environmentally friendly car.

Mr Carr said cutting the base-model Commodore’s fuel use from 10.6 to 9.3 litres per 100 kilometres by replacing its 3.6-litre V6 with a 3.0-litre version qualified it as a ‘‘green car’’.

‘‘That’s a start,’’ he said. ‘‘It’s about adoption of green technology that’s new to Australia.

‘‘We want to ensure cars are easier on the environment and easier on the pocket for motorists.

‘‘It doesn’t have to be a nuclear-powered vehicle, and it doesn’t need to be a hydrogen vehicle.

‘‘We have to work with the capacities we’ve got, to ensure that we attract investment and maintain jobs.’’

Mr Carr said the Australian industry could work with smaller changes, such as making cars more aerodynamic, using lightweight metals to cut bulk, experimenting with paint, fitting tyres that rolled along the road with less resistance, and introducing more fuel-efficient engines.

Holden has a $149 million slice of the Federal Government’s $6.2 billion green car assistance package to help it build the Cruze five-door hatchback from next year. Mr Carr said Holden had not asked for similar assistance for the new Commodore engines.

Ford, meanwhile, has asked for $42 million in government funding to help it put more fuel-efficient engines in its locally made Falcon large family sedan and Territory soft-roader.

Japanese car maker Toyota received $35 million from the Victorian Government to build a petrol-electric version of the Camry mid-sized sedan at Altona from early next year, rather than import it from Thailand.

Mr Carr said the Government was also bidding to have the next-generation Camry — due in about 2012 — built here rather than in Thailand.