General Motors is reportedly considering filing for bankruptcy create a new company under Chapter 11.
In its Saturday edition, The Wall Street Journal said all of GM's viable assets, including some US brands and international operations, would assemble into a new company under Chapter 11.
The newspaper said undesirable assets would be liquidated or sold under protection of a bankruptcy court. Contracts with unions, dealers, bondholders and suppliers would also be revised.
The Wall Street Journal said that GM could also ask for additional government funds to stave off a bankruptcy filing. GM declined to comment to the paper.
General Motors and Chrysler face a deadline of Tuesday to file restructuring plans to the government in exchange for receiving $US17.4 billion in federal loans.
Auto sales in the United States in January were the lowest for 27 years.
GM has already announced plans to cut 10,000 jobs worldwide, or 14% of its workforce, impose pay cuts, and has offered buyouts to its 62,000 employees in the United States represented by the UAW.
In addition, it is trying to sell its Hummer SUV and Saab brands and is reviewing the status of its Saturn brand.
