Car giant General Motors (GM) has filed for bankruptcy protection, marking the biggest failure of an industrial company in US history.
The widely expected move comes after GM had seen its losses widen following a steep fall in sales in recent years.
The move into bankruptcy protection has been backed by the US government, which is now expected to take a 60% stake in the company.
The White House is also going to put another $30bn (£18.5bn) into GM.
President Barack Obama described the move as "tough" but said it was "also fair" and added it would "give this iconic American company a chance to rise again".
He said that the US government, which will own 60% of the carmaker, would be a "reluctant shareholder" and that he had no interest in running it. As part of the plan, President Obama said that the share of GM cars sold in the US that had been made in the US would rise for the first time in 30 years.
The widely expected move comes after GM had seen its losses widen following a steep fall in sales in recent years.
The move into bankruptcy protection has been backed by the US government, which is now expected to take a 60% stake in the company.
The White House is also going to put another $30bn (£18.5bn) into GM.
President Barack Obama described the move as "tough" but said it was "also fair" and added it would "give this iconic American company a chance to rise again".
He said that the US government, which will own 60% of the carmaker, would be a "reluctant shareholder" and that he had no interest in running it. As part of the plan, President Obama said that the share of GM cars sold in the US that had been made in the US would rise for the first time in 30 years.
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