The White House says it has made progress in talks with US congressional leaders seeking to complete a rescue package for car makers. A deal could be reached as early as today.
White House spokeswoman Dana Perino said the administration backed the idea of the president naming an 'adviser' with the power to determine the car makers' viability.
The White House also supported a proposal that would give the companies about $15 billion in government loans if they showed a path to viability. But Ms Perino added that a key sticking point was that the White House had not yet been shown the language of any proposed legislation.
Earlier, it emerged that the British arm of Wagon, the European car parts maker which supplies some US car makers, faces bankruptcy after failing to clinch a rescue deal.
Wagon Automotive said it would appoint independent financial administrators to oversee its British division after talks broke down with banks in a bid to rescue the struggling division.
Wagon, which is based in Birmingham, makes car parts for groups including troubled US giants General Motors and Ford.
Wagon Automotive, controlled by US billionaire Wilbur Ross, employs more than 6,000 people in Europe, more than half of which are in France. According to weekend press reports, Wagon management had failed to persuade British banks to fund the group for the next three months.
