The White House toughened its stand on March 30 on new aid for ailing automakers, saying General Motors needs to "substantially" step up restructuring and Chrysler must seal a deal with Fiat.

President Barack Obama's auto task force said neither firm is "viable" at present but that both have a chance to avert bankruptcy if the new moves are taken.

GM chairman and chief executive Rick Wagoner was forced out at the request of Obama, as the task force unveiled grim prospects for the companies demanding an extra $21.6 billion in loans.

In two separate reports, the task force warned neither company had met the strict conditions laid down under an earlier $17.4 billion government bailout agreed late last year.

Obama will unveil his plan for the future of the industry at 11:00 am on March 30 with the two companies desperately seeking to steer out of the economic downturn that has sent global car sales plunging.

But the task force said Chrysler, the third largest of the Detroit Big Three, had no viability as a standalone company and demanded it seek a partner. The automaker has been given an extra 30 days to conclude its proposed alliance with Italian auto giant Fiat, the New York Times reported.

GM meanwhile was granted an extra 60 days to come up with a new cost-cutting plan, the newspaper said, after the White House slammed its restructuring proposals as insufficient, saying it needed to be much more aggressive if it was to have a long-term future.

Two senior White House officials told the Times that some form of bankruptcy could still be an option for one or both of the companies, describing it as a "quick court-supervised restructuring."

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