With its survival relying on a multi-billion-dollar US government bailout, GM said the export version of iconic Holden ute did not fit with Pontiac's sporty image.

But the company vowed to continue importing Aussie-built G8 sedans, with about 15,000 sold in 2008 and Holden said the loss of the ute would have little effect on its overall export program.

The blow for Holden came just weeks after GM officials in Detroit approved the development and assembly of a new small car in Adelaide from 2010.

Coming off the global Delta platform, the new fuel-efficient, four-cylinder model will be produced primarily for the domestic market, although Holden officials said export opportunities could also be pursued.

After news of the sport truck's demise, Holden spokesman Jonathan Rose said today the company's export program remained strong.

"The decision doesn't alter the foundations of our export program," he said.

"It (the sport truck) would have been an extension of the export program. That now won't occur."

Mr Rose said Holden would continue its excellent working relationship with Pontiac through production of the G8 Sedan, G8 GT and the recently launched G8 GXP.

He said the loss of sport truck would not affect production schedules or jobs at the Elizabeth assembly plant.

"We believe we can adequately handle this decision without a major disruption to our overall production at Elizabeth," he said.

But Australian Manufacturing Workers Union spokesman Jon Gee said the decision was disappointing and a concern for the local industry and car workers.

"It's a concern insomuch that the US economy is such a dog's breakfast, and it shows that we have no control over what happens over there," he said.

However, Mr Gee said the ute was always intended to be a low-volume export.