The US Treasury may adopt a plan that would allow them or a car czar to force General Motors and Chrysler into bankruptcy.

This would only happen if the carmakers don't show they can survive without Government aid, reports Bloomberg.com.

GM and Chrysler would be required to submit viability plans by March 31 or lose any further U.S support., Michigan democrat Carl Levin told reporters in Detroit yesterday.

GM and Chrysler both said they do not have enough money to see out this year and need $4bn and $7bn respectively to get them through to January.