General Motors plans to ask the Barack Obama administration for billions of dollars more in financial aid, saying that the only alternative to this is a bankruptcy reorganization also financed in part by the US government, The Wall Street Journal reported on Saturday.
Citing unnamed people "familiar with GM's thinking," the newspaper said the dilemma is a difficult one for Congress and the Obama administration.
The US government already gave GM 13.4 billion dollars in bailout money late last year.
Some experts and members of Congress say bankruptcy reorganization is the surest way for GM to cut costs and become viable, The Journal said.
But it could be a politically unpalatable development during a recession that already has thrown millions of workers out of jobs, according to the paper.
GM is due to present a restructuring plan to the Treasury Department by Tuesday.