The Melbourne team pulled an all-nighter in a bid to reassemble the car which suffered extensive chassis damage following a crash with Nick Percat in Friday's opening heat at Albert Park.
Holdsworth was clattered into by an out-of-control Percat following a brake failure at Turn 1.
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Charlie Schwerkolt's team managed to source parts from the Supercars paddock including a new rear subframe, but the repairs proved too extensive.
“The team worked through the night but pulled the pin early this morning when it was decided that the repairs to the extensive damage had taken longer than expected.
“Devastating for the team not to be racing today as we have a huge contingent of corporate sponsors and fans eager to see Lee repeat his fast pace from Friday's Race 1.
“ The car will be back to brand new condition for Tasmania. Big thanks to all the crew for their massive effort in getting the car so close.”
The team has confirmed the car will be fully repaired in time for the Tyrepower Tasmania Super Sprint from April 7-9.