The US government has revealed a $13.4bn package for the ailing US auto industry.
General Motors is to receive $9.4bn and Chrysler will get $4bn, while Ford said it did not need a loan at this time.
White House deputy chief of staff Joel Kaplan stressed the loans were for the auto manufacturers and not the company's financing divisions.
But government discussions with the financing sections are ongoing, he said.
US President George W Bush said bankruptcy would not be the responsible option for ailing car manufacturers at this time.
Mr Bush was speaking as his administration announced the $13.4bn in short-term financing, setting strict conditions to prove carmakers viability.
'Taxpayers will not be asked to provide financing for firms that do not become viable,' the White House said as the auto industry teetered on the brink of failure amid recession, a credit crisis and slumping sales.
An administration official said General Motors and Chrysler would be drawing on the loan immediately, and implementing tough belt-tightening to demonstrate viability.
'The terms and conditions of the financing provided by the Treasury Department will facilitate restructuring of our domestic auto industry, prevent disorderly bankruptcies during a time of economic difficulty, and protect the taxpayer by ensuring that only financially viable firms receive financing,' the White House said.
The funds will be drawn from the Treasury's $700bn Troubled Asset Relief Program.
An additional $4bn from the TARP will be available in February, 'contingent upon drawing down the second tranche of TARP funds,' the statement said.
The long-awaited decision by Mr Bush pushes the decision to release the $4bn from the TARP to the Democratic-controlled Congress under president-elect Barack Obama's administration.
'The firms must use these funds to become financially viable....If the firms have not attained viability by 31 March 2009, the loan will be called and all funds returned to the Treasury,' a statement said.
GM, Ford and Chrysler had 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 said yesterday it was closing its US units for a month from today after GM announced it was idling 30% of its North American production 'in response to rapidly deteriorating market conditions'.
Mr Bush had faced pressure to act before the Christmas and New Year holidays while White House officials had warned bankruptcy was one of the options being considered.
