Prime Minister Julia Gillard joined Holden employees today to unveil a new generation of Australian-made cars at Holden's Vehicle Operations in Elizabeth, South Australia.

The new locally-built Cruze rolls off the production line nearly 63 years after then Prime Minister Ben Chifley launched Australia's first mass-produced car, the Holden 48-215, famously declaring: "She's a beauty."

Revealing the latest Holden beauty, Holden Chairman and Managing Director Mike Devereux paid tribute to Holden's workforce and the Federal and South Australian Governments for their support in bringing Cruze to life in Australia.

"This is Holden's largest engineering and manufacturing program since VE Commodore but it's also a successful private and public partnership which shows what can be achieved when industry and government work together," he said.

Revealing the car for the first time, the Prime Minister was the first member of the public to drive the Australian-made Cruze, driving it off the production line in the upgraded General Assembly facility today.

Ms Gillard said on Monday the new car was proof that Australia's manufacturing had a bright and viable future.

"It is proof that in a tough global economy, we can compete, we can mix it with the best," she said.

The Cruze localisation program received a grant of $149 million from the federal government's Green Car Innovation Fund and a $30 million contribution from the South Australian Government.

"Automotive production is the largest manufacturing industry in Australia and we are one of only handful of countries in the world with this capability to design, build and sell cars," Mr Devereux said.

"Two years ago, during a make-or-break time for our people and our industry, we made the decision to build Cruze in Australia and it's already creating new capabilities and opportunities for the industry and our critically important supplier community."

The local Cruze range includes the most fuel-efficient car built in Australia, with the new 2.0 litre turbo diesel manual returning fuel economy of 5.6 litres per 100km and an all-new 1.4 litre turbo petrol model with fuel economy of 6.4 litres per 100km.

"Localising Cruze has allowed us to re-engineer the car for Australian drivers, with greater fuel efficiency and performance, and given our manufacturing operations the flexibility to meet the needs of the Australian market well into the future," Mr Devereux said.

Based on the flexible, small-car Delta architecture, new Cruze joins the Zeta-based Commodore large-car family on the same production line at Holden's Vehicle Operations (HVO) making Elizabeth one of the most flexible automotive manufacturing facilities in the world.

When Cruze hatch production starts later in the year HVO will produce 51 models, on two architectures, including six body styles and nine variants in left and right-hand drive.

HVO has added 1800 new parts to the manufacturing process for Cruze sedan with the roof, body sides, closures, fascias and majority of interior plastics also manufactured on site.

There are currently 2500 people employed onsite at Elizabeth. Regular production of the Cruze Sedan starts in March with HVO producing approximately 430 vehicles per day, over two shifts, five days a week.