WASHINGTON - Bankruptcy is one of the options being considered by the US administration for ailing US automakers, the White House said Thursday, adding a decision on what to do was close.
Asked if an orderly bankruptcy was one of the options for the embattled industry which has asked for government bailout, White House spokeswoman Dana Perino said "yes."
A managed bankruptcy as opposed to letting the auto manufacturers slide into an uncontrolled, unstructured collapse was in a "spectrum of options," she said, adding "we are very close" to a decision.
The country's Big Three auto manufacturers -- General Motors, Ford and Chrysler -- have asked for a 14-billion dollar government rescue plan to help tide them over in the economic crisis.
The Detroit Big Three have repeatedly warned that without a package of loans, millions of jobs could be lost, which they say would have devastating effects for the nation's already stumbling economy.
Chrysler, which is to shut down all its American units for a month from Friday amid a falling demand, hopes to reboot merger talks with General Motors as both companies grapple with imminent collapse, the Wall Street Journal reported Thursday.
President George W. Bush said late Wednesday he was "looking at all options," according to the transcript of a Fox News interview.
"A disorganized failure, disorganized bankruptcy or disorderly bankruptcy ... could cause great harm to the economy, beyond that which we're now witnessing. And that concerns me," Bush said.
"And the other point is that, I'm not interested in ... really putting good money after bad."
Asked when he will decide the auto question, the president replied: "I'm thinking through, you know, it needs to get done relatively soon."
GM said last week it was idling 30 percent of its North American production "in response to rapidly deteriorating market conditions."
US auto sales dropped 37 percent in November amid talk of a potential bankruptcy at General Motors or Chrysler should Washington fail to deliver the massive bailout package.