Washington - The government's auto task force has suggested that a "quick surgical" bankruptcy may be the best chance for both Chrysler and General Motors to survive, according to a report early Monday in the Wall Street Journal.

The journal cited a memo released late Sunday that also concludes that Chrysler had so far failed to show Washington it could be a viable company.

A "structured bankruptcy ... would be a tool to make it easier for General Motors and Chrysler to clear away old liabilities so they can get on a path to success," the memo was quoted as saying.

The information was released as US President Barack Obama prepared to make a major announcement Monday about the way forward for the two crisis-ridden companies which have received 17.4 billion dollars in federal money and are asking for another 20 billion dollars. (dpa)