Green car for South Australia?

South Australia should aim to manufacture a new "green car" the Australian Manufacturing Workers Union believes.

AMWU secretary John Camillo said the state should focus on how to win a slice of up to $1 billion which could be up for grabs for fuel efficient or alternative fuel car manufacturing, after the Federal Government releases its response to the industry review by former Victorian state premier Steve Bracks.

Mr Camillo said he expects the response to be released next Monday, including acceptance of a recommendation to bring forward Labor's $500 million "green car" innovation fund from 2011 to 2009, and doubling that figure if it was successful.

He maintained that the industry should not only focus on possible job losses from a recommendation to cut tariffs from 10 to 5 per cent in 2010.

"There will be a hell of a lot of money available and this is a great opportunity," Mr Camillo said.

"The Australian public are telling us they want a clean, green, locally manufactured vehicle and the opportunity is there with this money to deliver that."

Mr Camillo said he had met an electric engine manufacturer who could apply to use the former Mitsubishi site and some of the $1 billion green-car funding for a joint venture with a car manufacturer.

The vehicle manufacturing industry employs 8000, including 4000 workers in the components industry, which is expected to benefit from a rescue package of between $2 billion and $2.5 billion.