WASHINGTON -- The White House raised the possibility Thursday of an "orderly bankruptcy" to prevent General Motors Corp. and Chrysler LLC from collapse, calling it one of a range of options under consideration to help the ailing automakers.

"There's an orderly way to do bankruptcies that provides for more of a soft landing," White House spokeswoman Dana Perino said. "That's what we would be talking about."

Perino said a decision on how to help the automakers was "very close" and President Bush was narrowing his options. An announcement could come as early as today.

Under a managed bankruptcy, the government could provide financing to automakers to run their businesses while they reorganize under court supervision. The Treasury Department also could provide loan guarantees to private banks to get bankruptcy financing for the companies.

Automakers have strongly opposed the option, saying they worry that as many as 80 percent of customers wouldn't buy a vehicle from a bankrupt automaker. Other studies suggest that the government could guarantee vehicle warranties and reduce concern among consumers.

Perino and Bush both emphasized Thursday that, in its waning days, the administration would not allow the automakers to fail -- especially in such a weak economy.

"The president is not going to allow a disorderly collapse of the companies," Perino said. "That is not an option. We're going to do something. And we're nearing a conclusion."

The idea of a managed bankruptcy still did not appear to be the first choice of the Treasury Department, which could use up to $15 billion remaining in the first part of the $700 billion Wall Street rescue fund to provide short-term loans to GM and Chrysler with tough restructuring conditions attached.

Treasury officials have been scrutinizing the books of GM and Chrysler for the past week after the Senate failed to pass a compromise bill to provide $14 billion in emergency loans. GM says it needs $4 billion this month and $4 billion next month, while Chrysler says it needs $7 billion to survive through March 31.

Detroit's Big Three earlier this month had asked for $34 billion in loan guarantees and lines of credit. Ford Motor Co., which is in a better position than its crosstown rivals because it has more cash on hand, has asked for a $9 billion credit in case the market worsens but has said it doesn't intend to seek immediate loans.

GM and Chrysler have warned they could collapse early next year without government loans. Standard & Poor's said last week that the companies might not be able to make large payments to their suppliers due in early January without government aid.

Bush said bankruptcy would normally be the best option for restructuring.

"Under normal circumstances, no question, the bankruptcy court is the best way to sort through credit and debt and restructuring," Bush said Thursday during an appearance at The American Enterprise Institute, a conservative think tank. "These aren't normal circumstances. That's the problem."

Bush said the auto industry remains "fragile" and that an auto collapse could have a major impact on the markets. Detroit's Big Three automakers have about $100 billion in publicly traded debt and dozens of suppliers could collapse if any of the companies failed.

Bush also does not want to leave the crisis for President-elect Barack Obama.

"I thought about what it would be like for me to become president during this period," Bush said Thursday. "I believe that good policy is not to dump him a major catastrophe on his first day in office."

The bankruptcy talk emerged as GM and Chrysler denied a report Thursday that the automakers had restarted talks to combine the two ailing automakers.

The Wall Street Journal reported Thursday that talks about a tie-up resumed after Chrysler majority owner Cerberus Capital Management LP signaled it was willing to part with some of its stake in the automaker, but the main goal is to combine GMAC and Chrysler Financial.

Cerberus controls both finance companies and GM still holds a 49 percent stake in GMAC.

The Treasury is also weighing aid for GMAC and Chrysler Financial.Spokesman Tony Cervone said GM's position on merger talks with Chrysler had not changed since Nov. 7, when GM said the discussions had been suspended so it could focus on improving its cash position. He said there had been no merger discussions between the companies since. Chrysler spokeswoman Shawn Morgan also denied the report.

But a person familiar with the situation said there have been ongoing talks between GM and Cerberus about various business issues.

Any federal aid package is likely to call for concessions from key stakeholders, such as creditors and the United Auto Workers.

UAW officials met with Treasury Department officials earlier this week for a "fact-gathering session," Alan Reuther, the UAW's legislative affairs director, said Thursday. But he said the Treasury hasn't sought any specific concessions and hasn't tipped its hand about how it plans to aid automakers.

Reuther emphasized that the UAW was strongly opposed to any kind of bankruptcy filing, saying it could lead "to an uncontrolled bankruptcy and liquidation."

The automakers are struggling amid plunging auto sales and have taken steps to reduce expenses and production. Chrysler said it will close all 30 of its factories starting today for at least a month. Ford is extending to three weeks the holiday shutdown at 10 plants, while GM has postponed work on a $370 million engine factory in Flint and last week said it would cut production by 250,000 vehicles in the first quarter of 2009.

Chrysler sales fell 47 percent in November as overall industry sales fell 37 percent to a 26-year-low. Forecasters now predict 2009 will be dramatically worse this 2008.

House Speaker Nancy Pelosi, D-Calif., on Thursday again urged Bush to take quick action to help Detroit's automakers, saying the administration should "use its legal authority to provide assistance to prevent the imminent insolvency of the domestic auto industry."