Bomb-proof BMWs are expected to replace the prime minister's fleet of high-security Holden limousines after the local carmaker failed in a multi-million dollar bid to replace the armour-plated cars.
Holden didn't submit a bid for the new build contract to replace the ageing fleet of nine armour-plated Caprices, including the PM's own car "C1", The Daily Telegraph reported on Wednesday.
It reports that only four bids were entered, including by overseas car makers Audi and Mercedes-Benz.
The only car proposed with local input was reportedly an $800,000 British Aerospace version of the Holden Caprice, or a car based on a Holden chassis, costing $1.2 million per vehicle.
Holden said it had partnered with the two after market companies in bids to supply armoured plated cars.
"Holden is involved in two bids for this work and we would love to see the PM in a Caprice, and we have obviously provided caprice for this purpose before."
The Daily Telegraph reports neither of those options met international anti-terrorist standards.
The federal government is said now to be planning to sign a contract to buy BMW High Security 7-series vehicles, at a cost of $525,000 each.
The government already has a contract with BMW for high-security cars through the Department of Foreign Affairs and Trade.
The newspaper also reported that 20 of the German-built cars would need to be leased for the 2014 G20 Summit in Brisbane, costing at least $2 million.