Holden exit reveals deep divisions in Coalition Government

THE ABC has reported more about the deep divisions inside the Federal Government over car industry assistance, as news from overseas gives more credibility to claims Holden is about to exit Australia.

When the ABC revealed on Thursday night that senior federal ministers believed a decision had been made for Holden to quit the country, Industry Minister Ian Macfarlane quickly refuted the claims.

The next day he dared the public broadcaster to expose which of his colleagues had briefed against him.

The ABC can now reveal an internal brawl was sparked in the early weeks of the new Government, when in an interview with News Corp, Mr Macfarlane flagged "arm wrestling" the Treasurer over more money for the industry.

"I've won a few, I've lost a few. Let's have that arm wrestle, I'm happy to do it. I'm sure Joe (Hockey) will be clean," he said.

Read more at ABC News Online