The News Corp owned paper states that "the Australian motor industry has warned the Government that the viability of 'two or even three' of the nation's car makers is in doubt".
This has upset FCAI chief executive Andrew McKellar who said these and other claims made in the story about the industry's representations to Government are wrong.
The story by senior reporter Sid Marris and veteran political correspondent Dennis Shanahan goes further to suggest that Toyota, Ford, Mitsubishi and Holden recently warned the Federal Government that future investment in the auto industry was in doubt.
"No such letter exists, nor has there been any industry discussion on industrial relations matters as suggested in The Australian's story," Mr McKellar said.
With talks of struggling manufacturers not letting up, Mr McKellar said manufacturers "agree that it is appropriate that a broad ranging review of automotive industry policy arrangements should be undertaken as a matter of priority".
Both the Howard Government and the Opposition have committed to undertake such a review early next year.